TMI Blog1967 (8) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... el constituted ' plant ' within the meaning of section 10(5) of the Act, and whether the assessee is entitled to development rebate in respect thereof under section 10(2)(vib) of the Act ? " The facts as mentioned in the statement of the case are as follows: The assessee, the Taj Mahal Hotal, Secunderabad, is a registered firm running a, hotel at Secunderabad, with branches in Hyderabad. The assessment year under reference is 1960-61 for which the previous year is the year ending September 30, 1959. In the previous year, the assessee incurred an expenditure of Rs. 5 7,154 for installing sanitary fittings, and a further sum of Rs. 1, 1700 for pipeline fittings. On both these items, the assessee claimed development rebate before the Income- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r initial allowance of a percentage on the prescribed value of buildings, machinery, plant or furniture, which are the property of the assessee, and the second part deals with the allowance on buildings newly erected or machinery or plant, not being machinery or plant entitled to development rebate under clause (vib). Clause (vib), which was added in 1955, omitting unnecessary words, reads as follows : " Such profits or gains shall be computed after making the following allowances, namely :--- ....... (vib) in respect of machinery or plant being new, which has been installed after the 31st day of March, 1954, and which is wholly used for the purposes of the business carried on by the assessee, a surn by way of development rebate in r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plant " in section 10(2)(vib). The definition of plant extracted above does not throw any light on the meaning of the word, but it only shows that it is of wide import intended to include even vehicles, books, scientific apparatus and surgical equipmet purchased for the purpose of business, occupation or vocation. As observed by Lord Watson in Dilworth v. Commissioner of Stamps " include is very generally used in interpretation clauses in order to enlarge the meaning of the words or phrases occurring in the body of the statutes ". 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, de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... real intention of Parliament (vide Halsbury's Laws of England, third edition, paragraph 578 pages 387-88). If there is nothing to modify, nothing to alter, nothing to qualify the language which a statute contains, the words and sentences must be construed in their ordinary and natural meaning (ibid. paragraph 535, page 391). It is therefore, pemissible in ascertaining the ordinary sense of particular words to refer to dictionaries and the works of standard authors which show what that sense was when the statute was passed (ibid. paragraph 590, page 393). The rule 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 words, is especially important in cases ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o or annexed to realty that it may be regarded as legally a part of its use depending upon such considerations as whether it may be removed without irreparable damage, whether the parties (as landlord and tenant) regarded or are presumed by law to have regarded it as removable, whether its annexation was intended to be permanent and to further the purposes for which the structure is designed, or whether its annexation is really necessary to the contemplated use of the structure or only ornamental or convenient-called also immovable fixture..." In Chambers' Twentielth Ceintury Dictionary, the meaning of the word " plant " is given as, " equipment, machinery, apparatus for industrial activity. Sanitary fittings and pipeline fittings are, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... laimed depreciation allowance at 9 per cent. on the cost of sanitary fittings and the pipeline fittings treating them as " furniture and fittings in cinema houses and boarding houses " under rule 8(2) of the Income-tax Rules. The argument on behalf of the revenue is that though depreciation allowance on machinery and plant is provided for as item 3 under rule 8, the assessee chose to claim depreciation for sanitary fittings and pipeline fittings only as furniture and fittings, and hence cannot treat it as plant for purposes of section 10(2)(vib). The reason for the assessee claiming depreciation allowance under rule 8(2) is quite obvious, as he could thereby claim 9 per cent. depreciation, instead of 7 per cent. by treating it as plant. But ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
