1997 (12) TMI 8 - SC - Income Tax

Whether, the pontoons and tugs are covered by the expression ship and therefore, are entitled to development rebate at a higher rate of 40 per cent instead of 25 per cent on the basis of plant - Having regard to the width of the meaning given to the word ships in the depreciation table, it is clear that a flat-bottomed boat used as ferry -boat will clearly come within the description vessel ordinarily operating on inland waters - revenue appeal is dismissed

Summary

The Supreme Court ruled that pontoons and tugs are covered by the expression 'ship' for the purpose of development rebate at a higher rate of 40%. The definition of 'ship' includes tugs, and an expanded meaning includes pontoons. The Court agreed with the High Court's decision, dismissing the appeal with no costs.