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TMI Blog1971 (8) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... h branches at Sultan Bazar and King Kothi in Hyderabad. During the previous year ending 30th September, 1959 relating to the assessment year 1960-61, the assessee incurred an expenditure of Rs. 57,154 in installing sanitary fittings and of Rs. 1,370 for pipe-line fittings. The assessee claimed development rebate on these two items at the rate of 25 per cent. under section 10(2)(vib) of the Act amounting in the aggregate to Rs. 14,629. The Income-tax Officer disallowed the claim. On appeal, the Appellate Assistant Commissioner upheld the disallowance. An appeal was taken to the Appellate Tribunal. The Tribunal rejected the appeal holding that the definition of "plant" must necessarily be the same, whether it was for claiming depreciation und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... after the 31st day of March, 1954, which is wholly used for the purposes of the business carried on by the assessee, a sum by way of development rebate in respect of the year of acquisition of the ship or of the installation of the machinery or plant, equivalent to...." Section 10(5) provides, inter alia, that in sub-section (2) plant includes "vehicles, books, scientific apparatus and surgical equipment purchased for the purpose of the business, profession vocation. " The main argument of the learned counsel for the Commissioner of Income-tax, who is the appellant, is that the word "plant" should not have been given a wide meaning and should have been interpreted according to the common understanding in commercial circles among persons w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore. The very fact that even books have been included shows that the meaning intended to be given to "plant" is wide. The word "includes" is often used in interpretation clauses in order to enlarge the meaning of the words or phrases occurring in the body of the statute. When it is so used, these words and phrases must be construed as comprehending not only such things as they signify according to their nature and import, but also those things which the interpretation clause declares that they shall include. The word "include" is also susecptible of other constructions which it is unnecessary to go into. The case J. Lyons & Co. Ltd. v. Attorney-General, relied upon by the learned counsel for the appellant, apart from being distinguishabl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as whether these partitions were plant within sections 279 and 280 of the English Income Tax Act, 1952, so as to entitle the company to allowances under those sections. There the material words in the statute were "where the person carrying on a trade in any year of assessment has incurred expenditure on the provision of machinery or plant for the purposes of the trade". It was held that the partitions were "plant " as they were used in the carrying out of the company's trade or business. Donovan L.J. held that the partitions were used to enable the trader to cope with the vicissitudes of the business as it increased and diminished and reliedon the finding of the commissioners that the flexibility of accommodation which the partitions p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a wide meaning and that is why articles like books and surgical instruments were expressly included in the definition of "plant". In decided cases, the High Courts have rightly understood the meaning of the term "plant" in a wide sense., (See Commissioner of Income-tax v. Indian Turpentine and Rosin Co. Ltd.) If the dictionary meaning of the word "plant' were to be taken into consideration on the principle that the literal construction of a statute must be adhered to unless the context renders it plain that such a construction cannot be put on the words in question-this is what is stated in Webster's Third New International Dictionary :. " Land, buildings, machinery, apparatus and fixtures employed in carrying on trade or other ind ..... X X X X Extracts X X X X X X X X Extracts X X X X
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