TMI Blog1963 (7) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... l be hereinafter referred to as the 'Act'. 2. Section 10 (2) provides for the computation of profits or gain. Section 10 (2) (vi) provides for making allowances for depreciation. Section 10 (2) (vi-b) says: In respect of machinery and plant being new which has been installed after the 31st of March, 1954 and which is wholly used for the purposes of the business carded on by the assessee, a sum by way of development rebate, in respect of the year of installation equivalent to twenty five per cent of the actual cost of such machinery or plant to the assessee ..... . (Proviso omitted). 3. The word 'plant' is defined in Section 10(5) as Including: Vehicles, books, scientific apparatus and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so definite and specific a result. The tank and its supporting structure do not satisfy this definition. But their Lordships think that however skilfully definitions of 'machinery' may be framed, the determination in any given case of what is or is not 'mahinery' must to a large extent, depend upon the special facts of that case ..... 5. But one thing appears to me to be quite plain, and that is;-- When the legislature used two different expressions, namely, machinery or plant it could not have meant the same thing. It must be presumed that the legislature intended to convey by those two words two alternative concepts. Coming to the facts of the present case, there is no difficulty about the Electric Stove. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... relates to the scope of expression 'plant'. This is all that their Lordships stated while dealing with the scope of the expression 'machinery': We are also unable to agree with the alternative contentions of Mr. Mehta that these diesel engines constitute machinery being new which has been installed. In our view, in order that initial depreciation should be allowable on machinery, it must be a self-contained unit capable of being put to use in the business, profession or vocation for the benefit of which it is installed. In present case, the diesel engines installed by the assesses do not satisfy that test 9. The above decision of the Bombay High Court was accepted as correct by the Andhra Pradesh High Cour ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... means some mechanical contrivances which, by themselves or in combination with one or more other mechanical contrivances, by the combined movement and interdependent operation of their respective parts generate power, or evoke, modify, apply, or direct natural forces with the object in each case of effecting so definite and specific a result. Tested by these observations Diesel Engine is undoubtedly a machinery . 11. For the view taken by me, support is available from the decision of the Madras High Court in Mir Mohd. Ali v. Commr. of lncome tax, Madras MANU/TN/0186/1960 : AIR1960Mad476 . Therein their Lordships laid down that: the word 'machinery' must be given the same meaning with reference to each of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income Tax Act and continued to be machinery even after it was made an integral part of the assessee's bus and the assessee was therefore entitled to all the three classes of depreciation under paragraphs. (1) and (2) of Section 10(2)(vi) and Section 10(2)(vi-a) of the Acts. 12. The Kerala High Court adopted the Madras view In George Mathew v. Commr. of Income Tax, Kerala and Coimbatore [1961]43ITR535(Ker) . Therein their Lordships laid down that: the expression 'plant has a far wider connotation than the expression 'machinery'; These two expressions are used in the alternative in Section 10 (2) (vi) and (vi-a) of the Income Tax Act so that 'machinery' if it is new, though it does not constitute ..... X X X X Extracts X X X X X X X X Extracts X X X X
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