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TMI Blog1992 (11) TMI 11X X X X Extracts X X X X X X X X Extracts X X X X ..... f carrying out construction work at a higher rate of 35 per cent. on the ground that it was engaged in a priority industry. This claim was rejected by the Revenue authorities who held that the assessee was entitled to development rebate of 20 per cent. only. The Tribunal has agreed with this view taken by the Revenue authorities relying on an order of the Tribunal in the assessee's own case for the assessment year 1967-68. The assessee had returned long-term capital gains at Rs. 37,676. This figure was accepted by the Income-tax Officer. However, before the Appellate Assistant Commissioner the assessee contended that for working out the capital gains, the market value of the asset as on January 1, 1954, should be substituted. The Appellat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stified in not entertaining the assessee's ground of appeal requiring the substitution of the market value of the capital asset as on January 1, 1954 ? (iii) Whether the Tribunal erred in law in declining to admit the additional ground of appeal sought to be raised by the assessee ?" Question No. 1 : Under the relevant provision of section 33 as it stood at the relevant time it was provided as follows : "33.(1) In respect of a new ship acquired or new machinery or plant (other than office appliances or road transport vehicles) installed after the 31st day of March, 1954, which is owned by the assessee and is wholly used for the purposes of the business carried on by him, a sum by way of development rebate, equivalent to-.... (iii) i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ors, earth moving machinery, agricultural implements, ships, electronic equipment, gears, ball, roller and tapered bearings, tea, printing machinery and the like. If, therefore, machinery or plant is used for the purposes of business of construction, manufacture or production of any of these articles or things, the plant or machinery would qualify for the development rebate of 35 per cent. Mr. Mehta, learned counsel for the assessee, however, contends that in section 33(1)(iii)(c)(A) where machinery or plant is installed for the purposes of business of construction, such plant or machinery would qualify for a 35 per cent. rebate if it is installed before April 1, 1970. Similarly, machinery and plant installed for the purposes of manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-clause (A) is a composite clause dealing with various kinds of activities which the assessee may indulge in, in connection with the articles or things specified in the Fifth Schedule. Looking to the heterogeneous nature of articles or things mentioned in the Fifth Schedule, in relation to some of these articles or things, the appropriate activity may be termed as production or it may be termed as manufacture or it may be termed as construction-all three being allied activities as a result of which the article or thing comes into being. For example, it is an accepted position that in the case of ships (which is at item 19 in the Fifth Schedule), the appropriate activity is the activity of construction as against that for an item like ite ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e activities serially set out in that sub-clause, namely, construction, manufacture or production. A comma is, therefore, legitimately and as per the rules of grammar, required after the first activity to separate it from the second activity of manufacture. Since the second activity is followed by the word " or ", no comma is required after the second activity to separate it from the third activity. Therefore, punctuation is put as grammatically required. It does not disclose any intention of providing for a separate kind of business altogether. Punctuation, in any case, is a minor element in the construction of a statute. While departing from the English rule that punctuation cannot govern the interpretation of a statute, our courts have ..... X X X X Extracts X X X X X X X X Extracts X X X X
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