1974 (2) TMI 7 - GUJARAT HIGH COURT

Whether drawings and patterns received by an assessee from a foreign company under a collaboration agreement can be said to be “plant " on which depreciation is allowable under section 32 of the Income-tax Act, 1961 - There is no reason to exclude know-how from the wide meaning of the term plant. Further having regard to the legislative intend to give a wide meaning to the word "plant" material record of know-how is clearly included within the meaning of "plant" in section 32 - it would appear that the Tribunal was right in taking the view that it did, namely, that drawings and patterns were plant within the meaning of section 32 and that, therefore, the assessee was entitled to depreciation in respect of those assets on the pro rata cost of their acquisition. Our answer to the question referred to us, is, therefore, in the affirmative and in favour of the assessee and against the revenue