Inclusive definition of plant extends development rebate to business vehicles brought into use without fixed installation

An inclusive statutory definition of "plant" that expressly covers vehicles was held to govern the development rebate provision, so motor-cars and bicycles used wholly for the business qualified as plant. The word "installed" was interpreted broadly to mean inducted or introduced into use, not confined to physical fixing to the ground. On that construction, movable business assets could satisfy the installation requirement and the assessee was entitled to development rebate on the vehicles.

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Issues: Whether motor-cars and bicycles purchased and used for the business of the assessee qualified as "plant" for the purpose of development rebate under section 10(2)(vib) of the Income-tax Act, and whether such plant had been "installed" within the meaning of the provision.

Analysis: The special definition of "plant" in section 10(5) expressly included vehicles, books, scientific apparatus and surgical equipment purchased for the purposes of the business. In the absence of a strong indication to the contrary in section 10(2)(vib), that inclusive definition could not be cut down merely because the article was not fixed to the ground. The word "installed" was capable of meaning inducted or introduced, and was not confined to physical fixing in position. Vehicles, though movable, could therefore fall within the scope of the provision when used wholly for the business.

Conclusion: The assessee was entitled to development rebate in respect of the motor-cars and bicycles. The question referred was answered in the affirmative, in favour of the assessee.

Ratio Decidendi: Where the statute gives an inclusive definition of "plant" that expressly covers vehicles, the expression "installed" in the development rebate provision is not limited to fixed physical installation and may include movable business assets brought into use for the undertaking.

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