TMI Blog1988 (1) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee is entitled to higher rebate on all its automobile ancillaries including those utilised by it in the assembling of its own cars and in that view allowing a higher rebate at 25% for the assessment year 1971-72 ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the assessee's claim to development rebate in respect of the tube-well was justified and in that view granting development rebate on tube-well brought into existence during the assessment year 1971-72 for Rs. 1,18,205?" The controversy involved in question No. 1 is covered by the decision of this court in the case of the same assessee in respect of the earlier assessment years where an identical question was co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpression " plant should be interpreted broadly as had been done by courts and also having regard to the inclusive definition of the said expression in the Income-tax Act. The Tribunal held further that if any apparatus participated in production in any business or had any relation to or bearing on production or manufacture, then the same could be treated as a plant. The Tribunal also noted the meaning of the expression " plant " as given in Webster's Dictionary. The Tribunal accepted the contentions of the assessee that a tube-well was an apparatus with equipment necessary for drawing water from subterranean sources. The Tribunal found that such water was necessary not only for production but also for industrial labour and held that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his court under section 256(2) of the Act for a direction to the Tribunal to refer the said question. It was, therefore, submitted that the facts as found by the Tribunal have become final and cannot be gone into further in the present reference. The only question was the question of law whether the assessee was entitled to claim development rebate in respect of the tube-wells on the basis that the same were plant. Learned advocate for the assessee relied on and cited the following decisions to establish that the expression " plant " had a wide application and covered many items not considered in the ordinary sense to be manufacturing apparatus: (a) CIT v. Taj Mahal Hotel reported in [1971] 82 ITR 44 (SC). In this case, the assessee whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, was entitled to depreciation as also development rebate on the cost of digging the well. (c) CIT v. Warner Hindustan Ltd. [1979] 117 ITR 68 (AP). In this case, the Andhra Pradesh High Court followed its earlier decision in the case of the same assessee noted hereinabove and held that a well dug for the purpose of business was a plant within the meaning of section 43(3) of the Income-tax Act, 1961, and depreciation on the cost of such well was allowable as a deduction. (d) CIT v. Warner Hindusthan Ltd.[1985] 160 ITR 217 (AP). In this case also, the Andhra Pradesh High Court followed its earlier decisions in the case of the same assessee noted hereinabove and held that the assessee was entitled to claim depreciation on the cos ..... X X X X Extracts X X X X X X X X Extracts X X X X
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