TMI Blog1975 (6) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... ount by way of proportionate management expenses Question No. 2 relates to the assessment years 1963-64 to 1965-66 and is as under: Whether, on the facts and in the circumstances of the case, the assessee was entitled to relief in respect of interest on tax-free securities without deducting any amount by way of proportionate management expenses Question No. 3 relates to the assessment years 1962-63 to 1965-66 and is as under: Whether, on the facts and in the circumstances of the case, safe deposit vaults constituted 'plant' within the meaning of section 33(1) of the Income-tax Act, 1961, so as to be eligible for the grant of development rebate So far as questions Nos. 1 and 2 above referred to are concerned, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... clusive definition the enumeration therein cannot be regarded as exhaustive and any items therein included will enlighten us to find out the correct meaning of the word plant . Books, surgical equipment, etc., are included in the definition of the word plant . The question to be considered is whether a safe deposit vault is to be regarded as plant within the meaning of the Act. In Webster's Dictionary the meaning of the word plant is given as under: The machinery, apparatus, fixtures, etc., employed in carrying on a trade or a mechanical or other industrial business; as an electric-light plant, a fishing plant, etc. In the commercial sense, a plant may include real estate and all else that represents capital invested in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry meaning of the word 'plant', therefore, has connection with mechanical or industrial business or manufacture of finished goods from raw products. Even in the extended meaning of the word to which Mr. Pandit has invited our attention, itseems to us that it would only cover an asset representing capital investment in a manufacturing trade or business because, according to the said extended meaning, it must be something, which represents capital invested in the means of carrying on business exclusive of its raw materials or the manufactured product. In other words, this extended meaning has reference to capital invested in the manufacturing trade or business excepting that spent on the raw material or the manufactured product. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... place, the primary meaning it assigned to the word 'plant' is too narrow and constricted, that it must be an article having connection with mechanical or industrial business or manufacture of finished goods from raw products. Secondly, even the extended meaning of the word 'plant' was there confined merely to capital invested in the manufacturing trade or business . According to the Gujarat High Court, this interpretation was not justified having regard to the various decisions therein referred to. We may, however, refer to a decision of the House of Lords in Hinton (Inspector of Taxes) v. Maden and Ireland Ltd. [1960] 39 ITR 357 (HL), wherein the question whether knives and lasts used in the business of shoe and slipper ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant includes whatever apparatus or instruments are used by a businessman in carrying on his business. The term does not include stock-in-trade nor does it include the place in which the business is carried on. Whether any particular article more properly falls within 'plant' as thus understood, or in some other category, depends on all the circumstances of the case. We are in complete agreement with the meaning given by Lindley L.J. and we have to consider whether safe deposit vault is an apparatus used by the assessee for carrying on its business, and, secondly, whether it is a part of its stock-in-trade which it buys or makes for sale. It is nobody's contention that safe deposit vault can be regarded as a stock-in-trade. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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