TMI Blog1987 (9) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... 43(3) of the Incometax Act, 1961, and as such, depreciation and development rebate was rightly allowed ?" The assessee, Jai Drinks (P.) Ltd., was manufacturing and selling soft drinks like cococola, etc. The products of the assessee were supplied for sale in marked bottles. In respect of these assessment years, the assessee claimed depreciation and development rebate on bottles and shells used in bottling the soft drinks on the ground that they constituted " plant " as defined in section 43(3) of the Income-tax Act, 1961 (" the Act"). This point for the first two years was raised for the first time before the Appellate Assistant Commissioner who accepted the assessee's contention. For the third year, the point was raised before the Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tings installed in the hotel fell within the definition of " plant " to allow the assessee's claim for depreciation and development rebate on that basis. The Supreme Court pointed out that the definition of " plant " was an inclusive definition and the intention of the Legislature was to give it a wide meaning which is evident from the fact that articles like books and surgical instruments were expressly included in the definition of "plant". The test indicated by the Supreme Court in this decision was the utility of the article for properly carrying on the business of the assessee. On this basis, it was concluded that the sanitary fittings, etc., in a bathroom is one of the essential amenities or convenience which are normally provided in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 ITR 196 and the Calcutta High Court in CIT v. Steel Rolling Mills of Hindusthan (P.) Ltd. [1987] 164 ITR 633 have taken the view that gas cylinders fall within the definition of " plant " in section 43(3) where the business of the assessee is to manufacture gas and the gas cylinders are used for bottling the manufactured gas. In our opinion, these decisions also lend support to the conclusion we have reached. Consequently, the reference is answered against the Revenue and in favour of the assessee for all the three assessment years by answering the above question as under : " The Tribunal was justified in holding that the bottles and shells constitute "plant" within the meaning of section 43(3) of the Income-tax Act, 1961, and as such ..... X X X X Extracts X X X X X X X X Extracts X X X X
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