https://www.taxtmi.com/css/info/rss_sitemap/rss_feed.css?v=1746094055 https://www.taxtmi.com Business/Tax/Law/GST/India/Taxation/Policies/Legal/Corporate Tax/Personal Tax/Vat Law/Legal Information/Tax Information/Legal Services/Tax Services Tax Management India. Com / MS Knowledge Processing Pvt. Ltd. All rights reserved. One stop solution for Direct Taxes and Indirect Taxes https://www.taxtmi.com/caselaws?id=6254 https://www.taxtmi.com/caselaws?id=6254 Expenditure incurred in installing sanitary fittings and for pipe-line fittings in a hotel building - meaning of the word plant in section 10(2)(vib) of the Act - whether it be for claiming depreciation under section 10(2)(vi) or for development rebate under section 10(2)(vib) - HELD THAT:- In the present case, section 10(5) enlarges the definition of the word plant by including in it the words which have already been mentioned before. The very fact that even books have been included shows that the meaning intended to be given to plant is wide. The word includes is often used in interpretation clauses in order to enlarge the meaning of the words or phrases occurring in the body of the statute. When it is so used, these words and phrases must be construed as comprehending not only such things as they signify according to their nature and import, but also those things which the interpretation clause declares that they shall include. The word include is also susecptible of other constructions which it is unnecessary to go into. It cannot be denied that the business of a hotelier is carried on by adapting a building or premises in a suitable way to be used as a residential hotel where visitors come and stay and where there is arrangement for meals and other amenities are provided for their comfort and convenience. To have sanitary fittings, etc., in a bath room is one of the essential amenities or conveniences which are normally provided in any good hotel, in the present times. If the partitions in Jarrold s case could be treated as having been used for the purpose of the business of the trader, it is incomprehensible how sanitary fittings can be said to have no connection with the business of the hotelier. He can reasonably expect to get more custom and earn larger profit by charging higher rates for the use of rooms if the bath rooms have sanitary fittings and similar amenities. We are unable to see how the sanitary fittings in the bath rooms in a hotel will not be plant within section 10(2)(vib) read with section 10(2)(5) when it is quite clear that the intention of the legislature was to give it a wide meaning and that is why articles like books and surgical instruments were expressly included in the definition of plant . In decided cases, the High Courts have rightly understood the meaning of the term plant in a wide sense., See Commissioner of Income-tax v. Indian Turpentine and Rosin Co. Ltd.- [ 1969 (10) TMI 4 - ALLAHABAD HIGH COURT] . Thus, looking to the provisions of the Act, we are satisfied that the assets in question were required by the nature of the hotel business which the assessee was carrying on. They were not merely a part of the setting in which hotel business was being carried on. The High Court was right in not accepting the reasoning of the Tribunal based on the rates relating to depreciation under section 10(2)(vi) and the assessee having claimed that the sanitary and pipe-line fittings fell within the, meaning of furniture and fittings in rule 8(2) of the Rules. It has been rightly observed that the Rules were meant only for the purpose of carrying out the provisions of the Act and they could not take away what wag conferred by the Act or whittle down its effect. If the assessee had claimed higher depreciation allowance that would not detract from the meaning of the word plant in clause (vib) of section 10(2). Appeal dismissed. Case-Laws Income Tax Thu, 12 Aug 1971 00:00:00 +0530