Tube-well treated as plant for business use, allowing investment allowance under the Income-tax Act.

A tube-well installed for business use and employed to draw water needed for production and industrial labour falls within the wide meaning of "plant" under section 43(3) of the Income-tax Act, 1961. On that basis, the assessee was entitled to investment allowance on the cost of the tube-well. The stated ratio is that a tube-well used in business for production-related purposes qualifies as plant for income-tax purposes.

---

---

Issues: Whether a tube-well installed for business use constitutes "plant" and whether the assessee was entitled to investment allowance on its cost.

Analysis: A tube-well is an apparatus used for drawing water from subterranean sources, and the water drawn was necessary for production as well as industrial labour. In that context, it falls within the wide meaning of "plant" under section 43(3) of the Income-tax Act, 1961.

Conclusion: The assessee was entitled to investment allowance on the cost of the tube-well.

Ratio Decidendi: A tube-well used in the business and employed for production-related purposes is "plant" within the meaning of section 43(3) of the Income-tax Act, 1961.

---