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TMI Blog1961 (9) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... n with his business of supplying water for irrigation purposes to farmers. The assessee is an individual and derives income from various sources, one of which is the supply of water for irrigation purposes to farmers. In the assessment for the assessment years 1951-52, 1952-53 and 1953-54, the relevant accounting years for which were those ending on the 31st of March, 1951, 31st of March, 1952, and 31st of March, 1953, respectively, the assessee claimed depreciation on the storage water tanks constructed by him. Before the Income-tax Officer the claim for depreciation was on the basis of the asset being a "Building and Embankment" and depreciation was claimed at 2½ per cent. The claim was disallowed by the Income-tax Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e rate of 2% in the present case. Against the decision of the Appellate Assistant Commissioner, the department went in appeal to the Tribunal. The Tribunal took the view that there was no provision in the schedule to rule 8 which permitted allowance of depreciation in respect of water storage tanks. In its opinion, no analogy was permissible in respect of any other water storage tank with the storage tanks used as an asset of salt works under clause III(3)/B of the schedule to rule 8 for the purpose of allowing depreciation thereon. It, therefore, allowed the appeal of the department in so far as the depreciation allowed by the Appellate Assistant Commissioner was concerned. At the instance of the assessee the Tribunal drew up a statement ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent is that the schedule to rule 8 also indicates that the legislature has intended to give a wider meaning to the word "plant" and has, therefore, included within that term a large number of items including reservoirs. Thus, he says, in connection with the salt works, reservoirs have been definitely specified as plant entitled to have a certain specific rate in the matter of depreciation allowance. The item of reservoirs in the salt works is contained in the class of items where special rates have been provided for under the schedule. The specification of the reservoir in the item of salt works has been contained in the schedule for the reason that a special rate has been provided in respect of that reservoir but the very fact th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. Now, there is no manufacturing or industrial business involved in the present case. The water storage tank of the assessee is nothing but a container for the water, which is the stock-in-trade of the assessee. In our opinion, neither the primary meaning nor the extended meaning of the word "plant" given in the dictiona ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the business of shoe and slipper manufacture, could be regarded as plant or machinery as well as implements or utensils. It was contended for the Crown that the expenditure for the knives and lasts was on revenue account and the knives and lasts were not plant or machinery. It was held that the knives and lasts were machinery or plant and the expenditure on them was capital expenditure. It was observed by Lord Reid in that case as follows: "It is not disputed that 'plant' is also used in the Act as an ordinary English word. It is not altogether an easy word to construe : it may have a more or less extensive meaning according to its context. As a general statement of its meaning I would adopt the words of Lindley L.J. in Yarmou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny particular article more properly falls within 'plant' as thus understood, or in some other category depends on all the circumstances of the case'." Mr. Pandit argues relying on these observations that the word "plant" is capable of being given an extensive meaning and, if such extensive meaning is given, the water storage tank used for the purpose of the business of the assessee would come within the definition of the word "plant". In our view even the extended meaning, which has been given to the word "plant" in these observations, does not take it beyond the apparatus or instruments as are used by a businessman in carrying on his business. In order that the assessee may succeed it must b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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