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Issues: Whether sanitary fittings and pipeline fittings installed in a hotel constitute "plant" so as to qualify for development rebate under the relevant provisions of the Indian Income-tax Act, 1922.
Analysis: The definition of "plant" in the Act was treated as an enlarging definition and, therefore, not confined to machinery in a narrow mechanical sense. The expression was to be understood in its popular and commercial sense, having regard to the subject-matter of the statute and the business in question. Sanitary fittings and pipeline installations in a hotel were held to be essential amenities used in carrying on the hotel business and not merely part of the building or its passive setting. The Court rejected the view that the allowance claimed under depreciation rules could control the statutory meaning of "plant" for development rebate purposes.
Conclusion: Sanitary fittings and pipeline fittings in the hotel were "plant" within the meaning of the Act and the assessee was entitled to development rebate; the appeal failed.
Ratio Decidendi: Where the statutory definition of "plant" is enlarging, items installed in a business premises that are integral to the conduct of the business and provide essential commercial amenities may fall within "plant" even if they are not machinery in the ordinary sense.
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