9911796707
TMI Blog1986 (8) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... of catching and selling fish from the seas with the help of powered mechanised trawlers. In the return filed for the assessment year 1974-75, the assessee claimed a loss of Rs. 56,660 and in arriving at this loss, it had deducted sum of Rs. 61,456 by way of development rebate in respect of new trawlers purchased and used by it during the relevant previous year There is no dispute that the cost of acquisition of the new trawlers was Rs. 1,53,643. The assessee claimed that it was entitled to rebate at the rate of 40 per cent. under section 33(1)(b)(A) of the Income-tax Act on the ground that the trawlers are " ships " within the meaning of that provision. The Income-tax Officer was, however, of the view that trawlers are not ships within the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... included under the head 'ship' in item 4 of Part I of Appendix I to the Income-tax Rules, 1962, is of no guidance in construing the expression ' ship' occurring in section 33(1)(b) of the Income-tax Act, 1961. I, therefore, hold that the assessee will be entitled to development rebate in respect of fishing trawlers only at the rate of 15%. " The word " ship" is not defined in the Income-tax Act, 1961. Normally, in such circumstances, the word should not be understood in any technical sense, but it has to be construed in the popular sense and as pointed out by the Tribunal, in the sense that people conversant with the subject-matter with which the statute deals would attribute to it. But this rule also should not be understood in its absol ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar meanings are given for the word in other dictionaries. Webster's Dictionary gives the meaning of the word " trawl " as " a long line, sometimes more than a mile in length and supported by buoys, from which short lines with baited hooks are suspended: used especially in deep sea fishing, as for cod or haddock : a large, bag-like net dragged along the bottom of a fishing bank by a boat. As a verb " trawl " means, to drag, to catch or take with a trawl ". It is from this the vessel gets its name as a trawler, one which trawls, a fishing boat which trails or drags a trawl. Thus the word " trawler " would come within the meaning of " ship " as per the meaning given in the dictionary. We also find that for the purpose of section 32 of the Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s relevant for our purpose is that in that case also, the Bench considered Part I of Appendix I of the Rules where the categories of ships covered for the purpose of depreciation, as an inherent indication of the broad classification of vessels which will come within the word " ship " for the purpose of the Income-tax Act and that the ratio of that classification could be applied in interpreting the word for the purpose of development rebate under section 33. We are in entire agreement with the assessee in regard to this approach to the question. Except that section 33 is applicable to priority industries whereas depreciation is allowed in respect of every category and not restricted to priority industries, we are not able to see any distin ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
