9911796707
TMI Blog2001 (4) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... ent rebate in the case of machinery or plant installed for the purpose of the business of construction, manufacture or production of any one or more of the articles or things specified in the list in the Fifth Schedule, Section 33(l)(a) of the Income-tax Act, states : "In respect of a new ship or new machinery or plant (other than office appliances or road transport vehicles) which is owned by the assessee and is wholly used for the purposes of the business carried on by him, there shall, in accordance with and subject to the provisions of this section and of section 34, be allowed a deduction, in respect of the previous year in which the ship was acquired or the machinery or plant was installed or, if the ship, machinery or plant is firs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accepted and it concluded that the assessee is entitled to development rebate at the appropriate rate and directed the Income-tax Officer to recompute the income, by granting development rebate. It is in these circumstances, that the Revenue has caused to be brought before us the fallowing questions for the opinion of this court : "1. Whether the Appellate Tribunal was justified in law in holding and had valid materials to hold that the assessee is entitled to allowance of higher development rebate in respect of the plant and machinery installed for the purpose of manufacture of meters use@ for the measurement of electricity ? 2. Whether the Appellate Tribunal was justified in holding and also had valid material to hold that the machin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in which item No. (7) conceived of cables and the appellant was not entitled to the benefits available to a priority industry claimed by it." The said view of the High Court was confirmed by the Supreme Court in Hindustan Wire Products Ltd. v. CIT [1986] 161 ITR 749, wherein it is observed : "Item No. (7) of Schedule V or Schedule VI speaks of equipment for the generation or transmission of electricity and such equipment includes transformers, cables and transmission towers. To appreciate what is comprehended in item No. (7), it is permissible to refer to a related entry, item No. 24, which refers to component parts of the articles mentioned, inter alia, in item No. (7). When item No. 24 is read in its entirety, it is apparent that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of nuts, bolts and screws for automobiles falling under item No. (20) in the Fifth Schedule being automobile ancillaries' and that the items were actually manufactured by the respondent as prescribed under section 33(l)(b). Section 33(l)(b) did not state that the machinery which had been installed for the manufacture or production of one or more of the articles specified in the Fifth Schedule should be used solely or exclusively for the manufacture of that/those article/articles. As long as the machinery, which is installed, manufactures any of the articles specified in the Fifth Schedule, the assessee would be entitled to claim development rebate at the rate of 35 per cent., if the machinery was installed before the 1st day of April, 197 ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
