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TMI Blog1971 (8) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of the Andhra Pradesh High Court, in a case referred under section 66(1) of the Indian Income-tax Act, 1922 (hereinafter referred to as the Act ) The respondent who is the assessee is a registered firm running a hotel at Secunderabad with branches at Sultan Bazar and King Kothi in Hyderabad. During the previous year ending 30th September, 1959 relating to the assessment year 1960-61, the assessee incurred an expenditure of Rs. 57,154 in installing sanitary fittings and of Rs. 1,370 for pipe-line fittings. The assessee claimed development rebate on these two items at the rate of 25 per cent. under section 10(2)(vib) of the Act amounting in the aggregate to Rs. 14,629. The Income-tax Officer disallowed the claim. On appeal, the Appell ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction relates to the depreciation in respect of such buildings, machinery, plant or furniture being the property of the assessee. Clause (vib) of section 10(2) is as follows : In respect of a new ship acquired or new machinery or plant installed after the 31st day of March, 1954, which is wholly used for the purposes of the business carried on by the assessee, a sum by way of development rebate in respect of the year of acquisition of the ship or of the installation of the machinery or plant, equivalent to.... Section 10(5) provides, inter alia, that in sub-section (2) plant includes vehicles, books, scientific apparatus and surgical equipment purchased for the purpose of the business, profession vocation. The main ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ans that sense which people conversant with the subject-matter with which the statute is dealing, would attribute to it . In the present case, section 10(5) enlarges the definition of the word plant by including in it the words which have already been mentioned before. The very fact that even books have been included shows that the meaning intended to be given to plant is wide. The word includes is often used in interpretation clauses in order to enlarge the meaning of the words or phrases occurring in the body of the statute. When it is so used, these words and phrases must be construed as comprehending not only such things as they signify according to their nature and import, but also those things which the interpretation clause dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns could be erected so as to subdivide the floor space into a number of rooms of any size. Certain partitions were made which were screwed to the floor and ceiling only and could be easily moved if it was desired to alter the size or number of the rooms. The question was whether these partitions were plant within sections 279 and 280 of the English Income Tax Act, 1952, so as to entitle the company to allowances under those sections. There the material words in the statute were where the person carrying on a trade in any year of assessment has incurred expenditure on the provision of machinery or plant for the purposes of the trade . It was held that the partitions were plant as they were used in the carrying out of the company's tr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s have sanitary fittings and similar amenities. We are unable to see how the sanitary fittings in the bath rooms in a hotel will not be plant within section 10(2)(vib) read with section 10(2)(5) when it is quite clear that the intention of the legislature was to give it a wide meaning and that is why articles like books and surgical instruments were expressly included in the definition of plant . In decided cases, the High Courts have rightly understood the meaning of the term plant in a wide sense., (See Commissioner of Income-tax v. Indian Turpentine and Rosin Co. Ltd.) If the dictionary meaning of the word plant' were to be taken into consideration on the principle that the literal construction of a statute must be adhered t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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