9911796707
TMI Blog1979 (2) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... erned is 1971-72, the assessment year being 1972-73. The assessee's busines premises included a lodging establishment as well as a boarding section or restaurant. In the course of the year, the assessee had installed a lift at a cost of Rs. 80,604 and also certain other machineries and plants like cooking oven, refrigerators, air-conditioners, kitchen vessels, etc., at a total cost of Rs. 3,10,990. The cost of the assets installed during the year was allocated between these two businesses. In respect of the lodging premises, the total cost of the assets installed and allocated came to Rs. 1,19,739. The cost allocated to the restaurant came to Rs. 1,91,251. The cost of the lift had been included in the restaurant premises. The assessee claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 first put to use in the immediately succeeding previous year, then, in respect of that previous year, a sum by way of development rebate as specified in clause (b). (b) The sum referred to in clause (a) shall be--(A) ...... (B) in the case of machinery or plant,--...... (ii) where the machinery or plant is in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act which had brought the section to the position in which we find the same today. From the section, it would be found that s. 33(1) (we leave out the sub-clauses) allows development rebate, inter alia, in the case of machinery or plant installed by an Indian company in premises used as a hotel at the varying rates provided by the different clauses of sub-s. (1) of s. 33 of the Act. Sub-section (6) of s. 33 by its non-obstante clause sweeps away the development rebate thus granted in respect of machinery or plant installed after 31 st day of March, 1965, in any " office premises or residential accommodation including any accommodation in the nature of a guest house ". The proviso to sub-s. (6) provides that the destructive effect of the pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that students' hostels are " residential quarters " within the meaning of the second of the Explantions to s. 103 of the Municipal Corporations Act. The decision was followed by a Division Bench consisting of both of us in Very Rev. Mugr. Francis Payyappilly v. Corporation of Cochin [1978] ILR 2 Ker 362 and again, by another Division Bench in W.A. No. 350 of 1975. The decisions may throw some light on the meaning to be attributed to the expression " residential accommodation " in s. 33, sub-s. (6), of the Act. The Tribunal itself had, on an earlier occasion, held that a hotel would be residential accommodation. The question has to be approached and considered with special reference to the nature of the hotel, the extent and the type of re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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