1992 (8) TMI 66

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..... cts herein : (i) The relevant assessment year is 1970-71. The assessee claimed development rebate on three items, one of them being " books " of the value of Rs. 5,324. The Income-tax Officer found that the books were not covered by machinery or plant directly and wholly used for the purpose of business. However, the cost thereof was allowed as revenue expenditure but the claim for development rebate was rejected. (ii) On being aggrieved thereby, the assessee preferred an appeal to the Appellate Assistant Commissioner who found that " books " would fall within the meaning of the word " plant " under section 43(3) of the said Act, and, therefore, development rebate was admissible. He, therefore, directed the Income-tax Officer to allow d .....

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..... Co. Ltd. [1974] 96 ITR 672, a Division Bench of this court, speaking through justice P. D. Desai (as he then was), has taken the view that the word " plant " in its ordinary meaning is a word of wide import and it must be broadly construed having regard to the fact that articles like books and surgical instruments are expressly included in the definition of plant " under section 43(3) of the Act. The relevant test to be applied is does it fulfil the function of plant in the assessee's trading activity? Is it the tool of the taxpayer's trade? If it is, then it is plant, no matter that it is not very long-lasting or does not contain working parts such as a machine does and plays merely a passive role in the accomplishment of trading purposes .....

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..... f sheets of paper or other substance, blank, written or printed, fastened together so as to form a material whole ; esp. such a collection fastened together at the back, and protected by covers also, a literary composition long enough to make one volume, as dist. from a tract, pamphlet, essay, etc.' In this rather wide sense not only a literary or scientific book, book of art, law book, religious book, text book, dictionary and so on but also an account book, minutes book, cheque book, pocket diary, notebook and a hundred other varieties of objects satisfying the above description would be books. For the purpose of ascertaining the true meaning of the word 'books' in section 43(3) in which it occurs in conjunction with the expression 'use .....

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