9911796707
TMI Blog1978 (10) TMI 21X X X X Extracts X X X X X X X X Extracts X X X X ..... ndigarh Bench, at the instance of the CIT Patiala : " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the assessee was entitled to development rebate at the rate of 35% under section 33(1)(b)(B)(i) read with item No. (1) of the Fifth Schedule to the Income-tax Act, 1961 ? " It is not disputed that the assessee is manufacturi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and special steels. (2) Aluminium, copper, lead, and zinc (metals) ........" From the bare reading of this provision, it is obvious that if an assessee is engaged in construction, manufacture or production of any of the items mentioned in the Fifth Schedule, he is entitled to the rebate at the rate of 35 per cent. The Central Board of Direct Taxes was required to interpret the provisions of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowance of the higher rate of development rebate, Aluminium (metals) should necessarily be manufactured from aluminium ores, namely, bauxite, or it may be manufactured even from aluminium scrap. The matter has been examined by the Board and it has been decided that for the purpose of allowing the higher rate of development rebate at 35%, item (2) of the Fifth Schedule would include the manufact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o give the same interpretation as the Board itself gave to item (2) while interpreting item (1) of the Fifth Schedule. It would thus be seen that rebate at 35 per cent. will be available to the assessee, who manufactures, produces or constructs iron and steel (metal) either from the original ore or from the scraps. In view of the fact that the assessee is producing iron bars and girders from the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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