Plant or machinery installation: buses and lorries treated as installed, enabling development rebate under income-tax law.

Buses and lorries are treated as 'plant or machinery' within the statutory definition and the term 'installed' is satisfied where the vehicle has been set up for use in the taxpayer's transport business; applying the installation test to such movable plant, the development rebate under section 10(2)(vib) of the Income-tax Act is therefore allowable on buses and lorries. The same interpretation of 'installed' applies for related subsections addressing similar rebate provisions, producing an entitlement to the rebate when the vehicle is put into commercial use.

---

---

Issues: Whether buses and lorries are plant and machinery 'installed' and whether development rebate under section 10(2)(vib) of the Income-tax Act is allowable on buses and lorries.

Analysis: The expression "plant or machinery installed" must be given a meaning appropriate to the nature of the item described as "plant" under section 10(5) of the Income-tax Act. Vehicles are expressly included within the statutory definition of "plant." The test of "installation" is whether such installation as the particular plant is capable of has been completed so that the plant is set up for service or use. Applying that standard, a bus or lorry placed on the road and put to use in the taxpayer's transport business satisfies the requirement of being "installed." The same meaning of "installed" applies for the purposes of section 10(2)(via) and section 10(2)(vib).

Conclusion: The buses and lorries are plant and machinery "installed" and the development rebate under section 10(2)(vib) of the Income-tax Act is allowable on buses and lorries; decision in favour of the assessee.

---