9911796707
TMI Blog1999 (6) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income-tax Act, 1961, the Income-tax Appellate Tribunal has referred the following two questions of law to this court for opinion, both at the instance of the Revenue and the assessee : At the instance of the Revenue : "(1) Whether, on the facts and in the circumstances of the case, the assessee is entitled to development rebate under section 33(1)(b)(B)(i)(b) of the Income-tax Act, 1961, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the ground that the computer systems were mere office appliances and, as such, the assessee was not entitled to any development rebate thereon. On appeal, the Commissioner of Income-tax (Appeals), relying on the decision of this court in CIT v. International Computers Ltd. [1981] 131 ITR 1, held that the computer systems were not office appliances and were entitled to development rebate. The C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer to modify his order by allowing development rebate at 15 per cent. as against 25 per cent. allowed by him. This order was passed by the Commissioner in view of his finding that the system hired out by the assessee-company was not used by it for the purpose of production, etc., of any one or more of the articles or things specified in the Fifth Schedule. The assessee-company appealed to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat part is concerned, the controversy now stands concluded by the decision of the Supreme Court in CIT v. Shaan Finance (P.) Ltd. [1998] 231 ITR 308, wherein it has been held that where the business of the assessee consists of hiring out machinery and/or where the income derived by the assessee from the hiring of such machinery is business income, the assessee must be considered as having used th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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