Venkatesam, J. - (1.) The question referred to us for decision under Section 66 (1) of the Indian Income-tax Act, 1922, is as follows: "Whether the sanitary fittings and pipe-lines installed in the King Kothi Branch of the Hotel constituted "Plant" within the meaning of Section 10 (5) of the Act, and whether the assessee is entitled to development rebate in respect thereof under Section 10 (2) (vi-b) of the Act."
(2.) The facts as mentioned in the statement of the case are as follows;- The assessee, the Taj Mahal Hotel, Secunderabad, is a registered firm running a hotel at Secunderabad, with branches in Hyderabad. The assessment-year under reference is 1960-61, for which the previous is the year ending on 30-9-1959. In the previous year, the assessee incurred an expenditure of Rs. 57,154.00 for installing sanitary fittings, and a further sum of Rs. 1,370.00 for pipe-line fittings. On both these items, the assessee claimed development rebate before the income-tax Officer under Section 10 (2) (vi-b) of the Indian Income-tax Act, 1922, (hereinafter referred to as the Act ) The Income-tax Officer held that they did not come within the definition of Plant and machinery and disallowed the same. The Appellate Assistant Commissioner, in appeal, affirmed that order. On second appeal, the Appellate Tribunal took the view that the sanitary fittings and pipe-line fittings did not constitute machinery and the only point to decided was, whether they would come under the heading plant. The assessee claimed depreciation allowance on those items under Sec. 10 (2) (vi) as furniture and fittings at the rate of 9 per cent , instead of 7 per cent which would be allowed in the case of plant. Holding that the word plant must receive the same meaning in both the cases and also having regard to the dictionary meaning, the Tribunal held that the assets in question did not constitute plant and upheld the disallowance of the claim by the Tribunals.
(3.) The only question that is argued before us, and which arises for consideration is, what is the meaning of the word plant in Section 10 (2) (vi-b) of the Act.;