TaxTMI 
TaxTMI 
2003 (6) TMI 22
X X X X Extracts X X X X
X X X X Extracts X X X X
....he thermocole part of the building is the plant and not the rest. He relied on the decision in CIT v. Anand Theatres [2000] 244 ITR 192 (SC). Seeking to make a distinction on the facts, he drew inspiration from the said decision and contended that the building housing the cold storage can never be a plant since it has a distinct existence providing a shelter for housing the chambers being the thermocole part of the building which is less durable than the building. He attempted to draw a distinction on this aspect, namely, that the building which is a durable one is required to house or shelter the plant which is constructed by the thermocole part of the building which is less durable. Therefore, it would not be a plant for the purpose of de....
X X X X Extracts X X X X
X X X X Extracts X X X X
....red and maintained under the said provisions of the 1966 Act and the 1967 rules as amended from time to time. Under section 4(6), a licence can be cancelled for breach of any of the conditions of the licence or contravention of the Act. In certain circumstances of breaches, under section 4A, the management of the cold storage can be taken over by the State Government or the State Government can appoint a person to manage the cold storage so taken over. Under section 19, a licensee is liable to comply with the direction given to it. Under section 20, a licensing officer may enter upon to inspect the premises with a view to satisfying himself that the requirements of the Acts are being complied with. Under section 20B, the State Government ma....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er authorised by him in writing in this behalf, for entering, inspecting or examining the cold storage, for examining or inspecting the machinery and equipments, etc. Under rule 11, the licensee is bound to maintain the cold storage in the manner to meet the conditions stated therein. The cold storage is required to be constructed and maintained as to be damp-proof, heat-proof and protected against entry of or damage to the stored agricultural produce by birds, pests, noxious insects, rats and other rodents. The agricultural produce stored shall be kept and arranged in such a manner as to prevent its deterioration from damp, moisture, heat, blast, or from water from the floor, side walls, roof, doors and windows. It is to be provided with i....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the business. It is not only the insulation for which specification is provided for. On the other hand, the walls, roofs of the building are to be constructed or maintained in a particular manner, which is exclusively necessary for the purpose of the cold storage and then the roofs and walls are to be insulated. The insulation without the building cannot produce the result and the building without the insulation also equally disastrous for the purpose. The building with the insulation is an integral part for forming the apparatus or means. A building constructed otherwise than specified would not be able to house the insulation or produce the desired result. A cold storage is to be constructed in a particular manner and then insulated. The....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d Industries Ltd. [2003] 260 ITR 55 (Cal), therein we had held that the word "plant" is defined in section 43(3) of the Act. It is not an exhaustive definition. It is an inclusive definition. It includes any article or object fixed or movable, live or dead, used by a businessman for carrying on his business and it is not necessarily confined to an apparatus which is used for mechanical operation or process or is employed in mechanical or industrial business. The test to be applied for such determination is : does the article fulfil the function of a plant in the assessee's trading activity ? Is it a tool of his trade with which he carries on his business ? If the answer is in the affirmative, it will be a plant. We find that a cold stora....