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TMI Blog2004 (2) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... ue - - - - - Dated:- 26-2-2004 - Judge(s) : M. S. SHAH., A. M. KAPADIA. JUDGMENT The judgment of the court was delivered by M.S. Shah J.-In this reference at the instance of the Revenue, the following questions are referred for our opinion under section 256(1) of the Income-tax Act, 1961 ("the Act" for short), for the assessment year 1981-82: "1. Whether, on the facts and in the circumstances of the case and in law, the Tribunal is right in holding that the disallowance out of travelling expenses under the provisions of rule 6D of the Income-tax Rules should be worked out by taking into consideration the year-wise details of such travelling expenses rather than trip-wise expenses? 2. Whether, on the facts and in the circumstan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew: "In CIT v. Coramandel Fertilisers Ltd. [1996] 220 ITR 298, a Division Bench of the Andhra Pradesh High Court speaking through Mr. Justice S.S.M. Quadri (as his Lordship then was) has held that the ceiling fixed by clause (b) of sub-rule (2) of rule 6D has to be calculated with reference to the trip of an individual employee, but if an employee travels more than once in a year and spends more amount in one trip but less in another trip, the excess amount expended in one trip cannot be adjusted against the expenditure made in the next or subsequent trips. The actual expenditure incurred on each trip has to be ascertained with reference to the provisions of rule 6D. The unit of expenditure for purposes of rule 6D is the trip but not the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Sub-section 8(1) thereof provides that in respect of machinery or plant specified in subsection (2), which is owned by the assessee and is wholly used for the purposes of the business carried on by him, there shall be allowed a deduction, in respect of the previous year in which the machinery or plant was installed of a sum by way of investment allowance equal to 25 per cent, of the actual cost of the machinery or plant to the assessee. Sub-section (2) provides that the machinery or plant referred to in sub-section (1) shall be the following namely: "(b) any new machinery or plant installed after the 31st day of March, 1976,- ... (ii) in a small-scale industrial undertaking for the purposes of business of manufacture or production of an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Eleventh Schedule. Section 43(3) of the Act defines "plant" for the purposes of sections 28 to 41, which reads as under: "(3) 'plant' includes ships, vehicles, books, scientific apparatus and surgical equipment used for the purposes of the business or profession but does not include tea bushes or livestock." It is clear that the definition of "plant" is an inclusive one. Clause (3) of section 43 of the Act does not exhaust the definition of "plant". As far as the expression "scientific apparatus" is concerned, in CIT v. IBM World Trade Corporation [1981] 130 ITR 739 the Bombay High Court considered the meaning of the expression "apparatus" and held that it is a word of much wider import than the word "appliances" and the defin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eprinters. Explanation.- The expression 'office machines and apparatus' includes all machines and apparatus used in offices, shops, factories, workshops, educational institutions, railway stations, hotels and restaurants for doing office work, for data processing and for transmission and reception of messages." It is contended on behalf of the Revenue that computers are used for data processing and are, therefore, office machinery and apparatus. It, however, appears that though the Legislature treated data processing machines as a part of the office machinery and apparatus (only for the purpose of the Eleventh Schedule), computers are not included in the expression "office machinery and apparatus". Computers are more than mere data proc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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