Broad construction of "plant" under investment allowance law brings indispensable storage tank within eligible business apparatus.

For investment allowance under section 32A of the Income-tax Act, the term "plant" in section 43(3) is to be given a broad, inclusive construction because the allowance is beneficial and linked to the apparatus used to earn income. The ejusdem generis principle was held inapplicable, since the listed articles in section 43(3) do not form a rigid genus. Applying the functional test, an item qualifies as plant if it is essential or reasonably necessary for carrying on the business and serves as an apparatus or means incidental to that activity. On that basis, a storage tank indispensable to oil manufacturing was treated as plant, making it eligible for investment allowance.

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Issues: Whether a storage tank used in the assessee's manufacturing activity constituted "plant" for the purpose of investment allowance under section 32A of the Income-tax Act, 1961.

Analysis: The definition of "plant" in section 43(3) is inclusive and is intended to receive a wide construction in the context of section 32A, which grants a beneficial allowance linked to the means employed to earn income. The common feature of the articles mentioned in section 43(3) is not a rigid genus, and the principle of ejusdem generis was held inapplicable. The determining test was whether the article is necessary or facilitates the business and is an apparatus or means incidental to carrying on that business. Applying that approach, a storage tank indispensable to the assessee's oil-manufacturing activity was treated as an integral business apparatus.

Conclusion: The storage tank is "plant" within the meaning of section 32A, and the assessee is entitled to investment allowance on it.

Final Conclusion: The reference was answered in favour of the assessee and against the Revenue by holding that the storage tank qualified as plant for investment allowance purposes.

Ratio Decidendi: For a beneficial investment-allowance provision, "plant" must be construed broadly to include any apparatus or thing essential or reasonably necessary for carrying on the business, even if it is not a conventional machine.

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