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TMI Blog1968 (1) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... t in Tax Case No. 80 of 1964 in respect of (1) electric fans, (2) bicycles, (3) motor cycles, (4) office cars, (5) jeeps, (6) tractors, (7) typewriters and office appliances, and (8) electric installation. Applicant in Tax Case No. 81 of 1964 in respect of (1) motor cars, (2) typewriters, (3) office appliances and (4) bicycles. Applicant in Tax Case No. 129 of 1964 in respect of (1) adometers, (2) typewriters, (3) electric fans, (4) refrigerators, (5) jeeps, (6) cars, (7) survey instruments and (8) cycles. The Income-tax Officer rejected the claim of each of the applicants for development rebate, but the Appellate Assistant Commissioner allowed such a claim of the applicant in Tax Case No. 80 of 1964 for electric fans and electric installations, and in respect of the jeeps of the applicant in Tax Case No. 129 of 1964, but otherwise sustained the order of the Income-tax Officer. The revenue having thus dealt with their respective claims, the applicants approached the Tribunal for relief but with no success. On their requirement to the Tribunal to state a case to this court under section 66(1) of the Indian Income-tax Act, 1922, the following questions have been referred for us to re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd an encouragement to them to secure more and more of such machinery and plant so that they could be an aid to the developing economy of our country. It is in this perspective that the background and the circumstances in which clause (vib) of section 10(2) was put on the anvil has a bearing and a consideration. Historical setting can sometimes be invoked in the construction of statutes and their provisions. It is necessary in such circumstances for the well-instructed judge to put himself in the position of those responsible for the introduction of such words so as to ultimately interpret them in the real popular sense. As pointed out by Jessel M.R. in Holme v. Guy : " The court is not to be oblivious....of the history of law and legislation. Although the court is not at liberty to construe an Act of Parliament by the motives which influenced the legislature, yet when the history of law and legislation tells the court, and prior judgments tell this present court, what the object of the legislature was, the court is to see whether the terms of the section are such as fairly to carry out that object and no other...... As pointed out by Venkatarama Ayyar J., speaking for the Su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recommended by the Commission to selective industries were not fully implemented. On the other hand, clause (vib) was put in so as to give full and true effect to the proposal of the Government to allow a development rebate of 25 per cent. of the cost of all now plant and machinery installed for business purposes. We may at once consider the argument of the learned counsel for the revenue that, if any additional concession was intended or adumbrated in clause (vib) of section 10(2), it should be only to selective industries and cannot be extended to all industries. This contention invoking a dichotomy in the grant of such a rebate to a particular set of industries cannot be deduced while glancing at the historical development of this clause introduced for the first time by the Finance Act of 1955. In fact, this was adverted to by the Finance Minister and he was of the view that such a dichotomy deserves further consideration. He expressly opined that a development rebate has to be given to all industries in respect of plant and machinery inducted by them for their business purposes. We are, therefore, unable to agree with the contention of Sri Balasubrahmanyan, learned counsel f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment in his business ". Bearing in mind, therefore, the genesis for the introduction of this concession for the first time by the Finance Act of 1955, the scope of the concession as expressly spoken to by the Finance Minister, as also the ordinary and popular concept of the word " plant ", we are of the view that each of the applicants in the tax cases under review is entitled to the development rebate claimed by each of them before the revenue. The Tribunal was apparently guided by the word " instal " appearing in clause (vib) of section 10(2). The Supreme Court had occasion to interpret the words " machinery " and " instal " appearing in a similar clause in Commissioner of Income-tax v. Mir Mohammad Ali. While considering the meaning of the word " machinery ", their Lordships would say : " ......the definition of 'machinery' adopted by the Privy Council in Corporation of Calcutta v. Chairman, Cossipore and Chitpore Municipality, namely, 'machinery means some mechanical contrivances which by themselves or in combination with one or more contrivances by the joint movement and interdependent operation of their respective parts generate power or evoke, modify, apply or direct na ..... X X X X Extracts X X X X X X X X Extracts X X X X
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