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TMI Blog1993 (3) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... l depreciation under section 32(1)(vi) of the Act on such plant and machinery as claimed by the assessee-company ?" The assessee is a company which carries on the business as electrical installation contractors and manufacturers of electrical products. In its assessment for the assessment year 1976-77, the assessee claimed initial depreciation under section 32(1)(vi) of the Income-tax Act, 1961 (for short, "the Act"), on the ground that it was an "industrial company" within the meaning of section 2(9)(c) of the relevant Finance Act and a small scale industrial undertaking within the meaning of Explanation (3) to section 32(1)(vi) of the Act. This claim was rejected by the Income-tax Officer as in his opinion the assessee was not an "indus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was that the aggregate value of the machinery and plant installed by the assessee for the purpose of business of the undertaking exceeded Rs. 7.5 lakhs and that being so, in view of Explanation (3) to section 32(1)(vi) of the Act it could not be held to be a small scale industrial undertaking. The break-up of investment is as follows: Rs. "1. Plant and machinery 92,496 2. Tools and light plant 3,03,896 3. Motor cars, trucks and cycles 3,77,270 4. Typewriters and calculators 41,051 5. Electrical installation 20,909 ----------------- 8,35,622" ----------------- The Tribunal was of the opinion that under section 32(1)(vi), motorcars, trucks, cycles, typewriters and calculators which were, in all, valued at Rs. 4,18 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 32(1)(vi) of the Act was a question of law and, therefore, refrained the same and referred the question set out in paragraph I above to this court. The Revenue did not file any application under section 256(2) of the Act in regard to question No. 1 nor did it take out any notice of motion seeking reference of the same. Hence, the finding of the Tribunal that the assessee is an "industrial company" has become final. The only controversy that arises in this reference is whether the assessee is a "small scale industrial undertaking" within the meaning of Explanation (3) to section 32(1)(vi) of the Act. The submission of learned counsel for the Revenue before us is that motor cars, trucks, cycles, typewriters and calculators are plant and mac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... her articles or things, a sum equal to twenty per cent. of the actual cost of the ship, aircraft, machinery or plant to the assessee, in respect of the previous year in which the ship or aircraft is acquired or the machinery or plant is installed, or if the ship, aircraft, machinery or plant is first put to use in the immediately succeeding previous year, then, in respect of that previous year ; but any such sum shall not be deductible in determining the written down value for the purposes of clause (ii) Explanation.-For the purposes of this clause,-.... (3) an industrial undertaking shall be deemed to be a small scale industrial undertaking, if the aggregate value of the machinery and plant installed, as on the last day of the previous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rovision to which it is added as an Explanation. An Explanation appended to a section or a sub-section becomes an integral part of it and has no independent existence apart from it. There is, in the eye of law, only one enactment, of which both the section or the sub-section and the Explanation are two inseparable parts. In that view of the matter, in the absence of anything repugnant in the subject or context, the words and expressions used in the Explanation are to be given the same meaning as given to them in the main provision itself. On a conjoint reading of section 32(1)(vi) and Explanation (3) thereto, it becomes abundantly clear that the expression "machinery and plant" in the Explanation refers back to the "plant and machinery" des ..... X X X X Extracts X X X X X X X X Extracts X X X X
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