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TMI Blog1993 (6) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. Whether it was incumbent upon the Income-tax Officer to have made an order under section 201 for recovering the amount of the tax due on the amount paid to the non-resident in order to sustain the addition of Rs. 46,107 ? 3. Whether the Income-tax Appellate Tribunal was right in law in holding that surtax should be excluded in computing the income of the assessee-company ?" At the assessee's instance : "4. Whether, on the facts and in the circumstances of the case, the assessee was entitled to development rebate on the wall clock in the factory premises ?" The assessee is an industrial undertaking and is carrying on the business of manufacturing diesel engines, compressor pumps, etc. During the assessment proceedings for the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resident. The assessee's claim for deduction of the amount payable as surtax was rejected by the Income-tax Officer and that view was confirmed by the Appellate Assistant Commissioner in appeal. The Tribunal, on the other hand, upheld the contention of the assessee, as it was of the view that the said amount was deductible. As the Revenue was not satisfied with the order of the Tribunal as regards granting of the assessee's claim with respect to the expenditure of Rs. 46,107 and deductibility of the surtax amount, it moved the Tribunal under section 256(1) of the Act for referring four questions to this court. While opposing the Revenue's application, the assessee suggested six more questions to be referred to this court. Ultimately, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... permissible deduction. If the person responsible does not collect tax, then suitable action can be taken under section 201 of the Act. We are, therefore, of the opinion that the Tribunal was right in taking the view that the amount of Rs. 46,107 was required to be deleted from the computation of the assessee's total income and that the proper course for the Income-tax Officer was to make an order under section 201 for recovering the amount of tax due on the said amount paid to the non-resident. As regards the assessee's claim for development rebate for the wall clock installed in the factory premises, it was submitted by the learned advocate for the assessee that the said wall clock should have been considered as plant and on that basis, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... observed as under (at page 96 of 157 ITR) : "Does the article fulfil the function of a plant in the assessee's trading activity ? Is it a tool of his trade with which he carries on his business ? If the answer is in the affirmative, it will be a plant. " From the above decision, it becomes clear that the word "plant" as appearing in the relevant sections of the Act has been construed very widely and various articles like drawings, designs, charts, sanitary pipeline fittings, fans and air-conditioners have been regarded as "plant" by the courts. The learned advocates also relied upon the decision of this court in CIT v. Tarun Commercial Mills Ltd. [1985] 151 ITR 75 wherein air-conditioners and electric fans were held to be "plant" and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not only used in offices but also in factories, residential buildings and various other places. Therefore, a wall clock being of general utility, cannot be described as an office appliance. Next, we have to consider whether a wall clock can be regarded as "plant" for the purpose of section 33 of the Act. As pointed out above, the word "plant" has been very widely construed and if it is an article which is considered necessary and which is likely to advance the business of the assessee, then it has to be regarded as a plant used by him for the purpose of carrying on his business. There is no dispute as regards the fact that the wall clock has been installed by the assessee in its factory premises and it is used by the workers working therei ..... X X X X Extracts X X X X X X X X Extracts X X X X
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