1987 (9) TMI 8

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.... and shells constitute 'Plant' within the meaning of section 43(3) of the Incometax Act, 1961, and as such, depreciation and development rebate was rightly allowed ?" The assessee, Jai Drinks (P.) Ltd., was manufacturing and selling soft drinks like cococola, etc. The products of the assessee were supplied for sale in marked bottles. In respect of these assessment years, the assessee claimed depreciation and development rebate on bottles and shells used in bottling the soft drinks on the ground that they constituted " plant " as defined in section 43(3) of the Income-tax Act, 1961 (" the Act"). This point for the first two years was raised for the first time before the Appellate Assistant Commissioner who accepted the assessee's contenti....

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...., and the question was, whether the sanitary and pipe line fittings installed in the hotel fell within the definition of " plant " to allow the assessee's claim for depreciation and development rebate on that basis. The Supreme Court pointed out that the definition of " plant " was an inclusive definition and the intention of the Legislature was to give it a wide meaning which is evident from the fact that articles like books and surgical instruments were expressly included in the definition of "plant". The test indicated by the Supreme Court in this decision was the utility of the article for properly carrying on the business of the assessee. On this basis, it was concluded that the sanitary fittings, etc., in a bathroom is one of the esse....