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pl help

naroo (accountant) (184 Points)

10 June 2010

pl tell me what is the difference between plant and machinery or both are same.

pl get me out of this confusion

thnx in adv.

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9 Replies

Akhil Gupta (Manager F&A) (856 Points)
Replied 10 June 2010

Originally posted by : naroo
	pl tell me what is the difference between plant and machinery or both are same. pl get me out of this confusion thnx in adv.

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CA Shantanu Goyal (Practicing CA) (122 Points)
Replied 10 June 2010

In general a machine is a device that utilizes transformation of energy to perform some activity.

In CIT v. Mir Mohammad Ali [1964] 53 ITR 165 (SC) the word ‘machinery’ when used in ordinary language prima facie means some mechanical contrivance which, by themselves or in combination with one or more mechanical contrivances, by the combined movement and inter-dependent operation of their respective parts, generate power, or evoke, modify, apply or direct natural forces with the object in each case of effecting so definite and specific a result.

The word plant means group of machines to combined together to performe/produce a specific work/good whether in continuous process or in breaks.

PLANT is taken in wider sense cover machinery also.

if you find anything more in this regard please let me know

5 Like

Bhavik Davda (Proprietor) (238 Points)
Replied 10 June 2010

Thank you Mr. Goyal.

The machinery refers as above but the plant includes the Infrastructure like builing and its alide aminities. For E.g. building electrical feetings are considered as machinery where a chamber is being made particularly to carry out some process it is considered as plant.

Regards,

www.vaibham.com

1 Like

Kalpesh Chauhan, (Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com)) (8311 Points)
Replied 10 June 2010

Agree with Mr. Bhavik and Mr. Shantanu

Akhil Gupta (Manager F&A) (856 Points)
Replied 10 June 2010

Equipment - are machines or major tools necessary to complete a given task. The tools a mechanic needs to repair a machine are an example while Machine is a system or device for doing work, as an automobile or a jackhammer, together with its power source and auxiliary equipment.
........
Machines are devices that need a person's attention to be used. Equipment are devices that do not need this attention. Example, a refrigerator is equipment. A steel cutter is machine. Example, a stove is equipment, a computer or a fax are machines. We call it, "fax machine".

Machinery is the plural form for machine. More than one machine.

Plant is taken in wider sense to cover machinery also. Plant was defined to include whatever apparatus which is used in carrying on the business of a person but does not include the stock-in-trade which a person buys or makes for sale. In addition, it includes all goods and chattels, fixed or movable, live or dead which a businessman keeps for permanent employment in his business.

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priyanka bathwal (student) (160 Points)
Replied 10 June 2010

Machinery is immovable plant are generally movable.

This is what my teacher taught me in the class

CA Ankur Mittal (Assistant Manager @ Reliance Communication) (759 Points)
Replied 10 June 2010

am sorry to say priyanka machinery may or may not be movable but plant is a wider term and include a place where one is fixed with all the miachinery and equipment and is not movable

Anuj (Article) (44 Points)
Replied 11 June 2010

Suppose a male individual (A) opens a locker in a nationalised bank in his own name. At the age of 65 years Mr. A dies. Since then for a period of 29 years no one came to operate the bank locker. After 29 years from the death of Mr. A, son of Mr.A {Mr. B} wants to claim the bank locker. Mr.A while opening the bank locker appointed no nominee for the same. Further Mr.B is having the key of the bank locker.

Suggest what will happen. If he is eligible for the same what he has to do to claim the same?