TMI Blog1977 (2) TMI 15X X X X Extracts X X X X X X X X Extracts X X X X ..... 84 constitutes an item of plant and machinery and not a building and the depreciation and the development rebate should be allowed thereon on such basis?" The question referred to in T.C. No. 423 of 1974 runs as follows : "Whether, on the facts and in the circumstances of the case, it has been rightly held that the special reinforced foundation constructed at a cost of Rs. 8,21,617 would constitute an item of plant and machinery and, therefore, would be entitled to depreciation and development rebate?" The assessments to which these two references relate were made for the assessment years 1962-63 and 1965-66. The assessee-company carries on business in the manufacture and sale of cement. The rotary kiln which forms part of the product ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before the Tribunal was that having regard to the fact that the foundation forms part of the plant and the plant cannot function without the foundation, there was no justification to treat the machinery foundation as building and thus depriving the relief of development and depreciation rebate on the basis that the foundation was not plant. The Tribunal upheld the assessee's contention and it is this conclusion of the Tribunal that is challenged in the two references that are now before us. As may be seen from the questions extracted already, though there are two references, both of them raise only a common question and that is whether the special reinforced foundation constructed for the purpose of installing the rotary kiln could be tak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t referred to the dictionary meaning of the word "plant" in Webster's Third New International Dictionary wherein it is stated that "plant" means : "Land, building, machinery, apparatus and fixtures employed in carrying on trade or other industrial business..." When once the term "plant" comprehends buildings employed in carrying on trade or other industrial business, it would be clear that in the present case the special reinforced concrete foundation for the purpose of locating or installing the kiln would come within the scope of the expression "plant". The Supreme Court in that case was concerned with the question as to whether the sanitary and pipeline fittings would come within the scope of the expression "plant". The sanitary and pipe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other amenities are provided for their comfort and convenience. To have sanitary fittings, etc., in a bath room is one of the essential amenities or conveniences which are normally provided in any good hotel in the present times." While referring to a decision of the Court of Appeal in Jarrold's case reported in [1963] 1 WLR 214, the Supreme Court observed : "If the partitions in Jarrold's case [1963] 1 WLR 214 could be treated as having been used for the purpose of the business of the trader, it is incomprehensible how sanitary fittings can be said to have no connection with the business of the hotelier." The term "plant" has been understood by the Gujarat High Court in Commissioner of Income-tax v. Elecon Engineering Co. Ltd. [19 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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