Judgment:
B. N. KIRPAL, J. :
In this case one of the two questions of law which have been referred to this Court under s. 256(1) of the IT Act pertains to the allowance of depreciation and development rebate on counters, steel equipment, electrical fittings, calculating machine and cooling equipment. The case of the assessed was that all such items which were valued at less than Rs. 750 each should be allowed depreciation @ 100% and should also be allowed development rebate. This argument found favor with the Tribunal and a reference in respect thereof has been made to this Court.
2. While relying upon certain observations in the case of J. Lyons & Co. vs. Attorney General 1944 Chancery 281 it is contended by learned counsel for the Department that the steel equipment and electrical equipment and electrical fittings cannot be regarded as parts of plant and machinery. He also relies upon a decision of the Bombay High Court in the case of CIT vs . Bank of India : [1979]118ITR809(Bom) .
3. In our opinion it is necessary to have further details with regard to such steel equipment and electrical fittings. The Supreme Court in CIT vs . Taj Mahal Hotel : [1971]82ITR44(SC) had held that the word 'Plant' should be given a wide meaning. In this case the Supreme Court had approved a decision of the Court of Appeal in the case of Jarrold vs. John Good & Sons 1963 (1) WLR 214 in which it had been held that in a hotel, pipes could be regarded as a plant. One of the tests which was approved by the Supreme Court in this case was whether the items in question were used for the purpose of business or not. It is important to find out as to what is the nature of the steel equipment and the electrical fittings. In the statement of case as well as in the order of the Tribunal no details are given because reference is made to an earlier order, copy of which is not before us.
4. We, thereforee, direct the Tribunal to submit a supplementary statement of the case indicating as to what are the different items of steel equipment and electrical fittings on which the assessed had claimed depreciation at 100% and development rebate.
This reference be listed for hearing after the receipt of the supplementary statement of the case which should be filed within six months from the date of the service of copy of this order on the Tribunal.