New Machinery Or Plant

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.... any period prior to the date of the installation of the machinery or plant by the assessee; In Stroud's Judicial Dictionary, Fourth Edition VI. 4, at page 2036, a distinction between "plant" and "machinery" has been drawn as under : 'Plant and machinery' are two quite different things (per Kekewich J., Re Brooke 64 LJ Ch 27). On a contract for the sale of a freehold brewery which provided that its 'fixed plant and machinery' should be paid for by valuation, Kekewich J., held that, 'speaking generally', 'machinery' includes everything which by its action produces or assists in production ; and that 'plant' might be regarded as that without which production could not go on ... and included ....

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...., otherwise the court would not have gone into the question whether the sanitary fittings used in bath room was plant. (3) For a building used for a hotel, specific provision is made granting additional depreciation under section 32(1)(v) of the Act. (4) Barclay, Curle and Co.'s case 1969 (1) TMI 69 - HOUSE OF LORDS, decided by the House of Lords pertains to a dry dock yard which itself was functioning as a plant that is to say, structure for the plant was constructed so that dry dock can operate. It operated as an essential part in the operations which took place in getting a ship into the dock, holding it securely and then returning it to the river. The dock as a complete unit contained a large amount of equipment without which the ....

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....he same purpose, namely, as a hotel or theatre would be unreasonable. used as a cinema along with its fittings and fixtures and wherein cinema business was carried on constituted a plant. [Karnataka Power Corporation - 2000 (7) TMI 72 - SUPREME COURT] "To differentiate a building for grant of additional depreciation by holding it to be a 'plant' in one case where a building is specially designed and constructed with some special features to attract the customers and the building not so constructed but used for the same purpose, namely, as a hotel or theatre would be unreasonable." This observation is, in our view, limited to buildings that are used for the purposes of hotels or cinema theatres and will not always apply ot....