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TMI Blog1984 (2) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... d prior to 31-5-1974 on which development rebate had been allowed in accordance with law. This objection of the revenue has arisen on account of insertion of clause (vi) in section 32(1) by the Direct Taxes (Amendment) Act, 1974, with effect from 1-4-1975. By the insertion of this clause, additional depreciation was to be allowed on the machinery newly installed after 31-5-1974 instead of the development rebate as provided in section 33 of the Act. The question of date of installation of machinery, thus, acquired importance on account of the introduction of this new provision, which referred to a date likely to fall within the accounting year of an assessee. In the instant case, the assessee's accounting year for his proprietary business of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r 1974. 1.5. From the above, it is clear that when a number of machines are installed as part of one and same unit of manufacture, the entire can be said to have been installed on the day when the last of the machines is installed. In the appellant's case the plating plant, which is one of the machines for the manufacture of cycle-handles, which was installed in the month of November 1974, the entire manufacturing unit for the manufacture of bicycle-handles can be held to have installed in November 1974, i.e., after 31st May, 1974. Accordingly, the appellant is entitled to additional depreciation on the entire machinery installed amounting to Rs. 4,69,495. " The ITO in the assessment order under appeal allowed development rebate at the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... achinery installed in April 1974, i.e., before the crucial date of 31-5-1974 was a unit, which was capable of producing the cycle-handles except in respect of certain processes. The only process which appears to be left out, as can be seen from para 1.5, quoted above, relates to the installation of plating plant. In that para, the assessee has clearly stated that plating plant was one of the machines for the manufacture of cycle-handles, which was installed in the month of November 1974 and on that basis it was claimed that the entire unit was installed in November 1974. It is clear that plating plant was an independent unit which could plate the handles already manufactured. This was an independent unit which was required for further proce ..... X X X X Extracts X X X X X X X X Extracts X X X X
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