Business fittings can qualify as plant when used as operational apparatus, even if fixed to a building.

Light fittings, ceiling and pedestal fans, and water pipe fittings used in a hotel were treated as plant for development rebate purposes under the Income-tax Act because they functioned as business apparatus in the assessee's hotel operations. Mere attachment to the building did not, by itself, remove their character as plant, and in the absence of a statutory definition the ordinary business meaning of plant applied. The items were not mere office appliances and did not fall within the exclusion relied on by the revenue, so development rebate was available on them.

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Issues: Whether light fittings, ceiling and pedestal fans, and water pipe fittings used in a hotel were "plant" so as to qualify for development rebate under section 10(2)(vib) of the Income-tax Act, 1961.

Analysis: The items were used in the assessee's hotel business and were not shown to fall within any specific exclusion in the Act. The fact that they were affixed to the building did not, by itself, deprive them of the character of plant. In the absence of a statutory definition, the ordinary business meaning of plant was applied, namely apparatus employed for carrying on the business. The items were not mere office appliances and therefore did not attract the proviso relied on by the revenue.

Conclusion: The items were plant within section 10(2)(vib) and the assessee was entitled to development rebate on them.

Final Conclusion: The reference was answered in favour of the assessee and against the revenue, with costs.

Ratio Decidendi: Articles or fittings used as business apparatus do not lose their character as plant merely because they are fixed to a building, unless the Act specifically excludes them.

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