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Interpretation of the term 'machinery' in Section 10 (2) (vi) (b) of the Indian Income-tax Act, 1922. Analysis: The judgment by K.S. Hegde and Ahmad Ali Khan, JJ., delves into the interpretation of the term 'machinery' in Section 10 (2) (vi) (b) of the Indian Income-tax Act, 1922. The primary issue revolves around the meaning of 'machinery' and whether it is distinct from 'plant' as used in the Act. The Privy Council's observation in Corporation of Calcutta v. Chairman Cossipore and Chitapore Municipality is cited, highlighting the complexity of defining 'machinery.' The judgment emphasizes the need to differentiate between 'machinery' and 'plant,' suggesting that they convey two alternative concepts. The judgment discusses conflicting judicial opinions on the scope of 'machinery.' The Bombay High Court's decision in Manek-lal Vallabh Das Parekh v. Commr. of Income Tax is referenced, emphasizing the requirement for machinery to be a self-contained unit to qualify for initial depreciation. This viewpoint is upheld by the Andhra Pradesh High Court in B. Sreekantaiah v. Commr. of Income Tax, further stressing the need for machinery to be viewed as a unit, excluding component parts. Contrary to the above, the Madras High Court in Mir Mohd. Ali v. Commr. of Income Tax and the Kerala High Court in George Mathew v. Commr. of Income Tax adopt a broader interpretation of 'machinery.' They assert that machinery need not be a self-contained unit and can include components used in conjunction with other machines. This broader perspective aligns 'machinery' with the ordinary meaning of the term and maintains consistency throughout Section 10(2) (vi) and (vi-a) of the Act. Ultimately, K.S. Hegde concludes that a Diesel Engine qualifies as 'machinery,' supported by the Madras and Kerala High Courts' interpretations. The judgment rules in favor of the assessed individual, emphasizing the expansive definition of 'machinery' and ordering the Revenue to pay costs. Ahmad Ali Khan concurs with the decision, leading to the reference being answered in the affirmative.
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