Technical know-how in documentary form qualifies as plant, allowing depreciation under the income-tax law.

Technical know-how embodied in book form, including numerical diagrams, data, formulae and detailed instructions, was treated as "plant" for income-tax purposes. Applying the Supreme Court's view that such documentary technical know-how falls within section 43(3) of the Income-tax Act, 1961, depreciation was held admissible under section 32. The question was therefore answered in the affirmative in favour of the assessee.

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Issues: Whether technical know-how contained in book form, comprising numerical diagrams, data, formulae and detailed instructions, constitutes "plant" so as to qualify for depreciation.

Analysis: The answer followed the Supreme Court decision holding that technical know-how embodied in such documentary form is plant within the meaning of section 43(3) of the Income-tax Act, 1961, and depreciation is admissible under section 32.

Conclusion: The question was answered in the affirmative and in favour of the assessee.

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