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TMI Blog1959 (6) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... 2. The assessee is a public limited company. It manufactures cloth. It has also a dyeing plant. In the year of account it purchased motor-cars and cycles for the use of its business and claimed that it was entitled to development rebate as provided under section 10(2)(vib) of the Income-tax Act. Section 10(2)(vib) reads as under: Such profits or gains shall be computed after making the following allowances, namely:-- (vib) in respect of machinery or plant being new, which has been installed after the 31st day of March, 1954, and which is wholly used for the purposes of the business carried on by the assessee, a sum by way of development rebate in respect of the year of installation equivalent to twenty-fiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed certain motor-cars and bicycles for use in their business and claimed in the year of assessment 1955-56 development rebate under section 10(2)(vi) of the Income-tax Act. The Income-tax authorities allowed the assesses the normal depreciation on the motor-cars and the bicycles under section 10(2)(vi). The Tribunal also allowed to the assesses development rebate in respect of the motor-cars and bicycles holding that the motor-cars and bicycles were plant within the meaning of section 10(2)(vib) of the Income-tax Act and that the same had been installed after 31st March, 1954, and had been wholly used for the purpose of the business carried on by the assesses. In this reference, Mr. Joshi for the Department contends that even though ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assumption made by Mr. Joshi that the expression installed must necessarily mean fixed in position at the time when the plant is worked or used does not, in our judgment, seem to be justified. The expression installed is also used in the sense of inducted or introduced , and if that be the sense in which that expression is used, there is nothing inconsistent in the context in which that word is used which will justify us in holding that the word plant in section 10, sub-section (2), clause (vib), of the Income-tax Act was not intended to include vehicles. We, therefore, proceed to answer the question referred to us for decision in the affirmative. The Commissioner to pay the costs of the assesses. Question answered in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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