Deemed licensee status can satisfy tax rebate conditions despite a general statutory exclusion where the Act so provides.

The Punjab State Electricity Board was considered a licensee for the purpose of the development rebate proviso because the Electricity (Supply) Act, 1948 deemed it to have the powers and obligations of a licensee and treated the Act as its licence. Although the general definition of "licensee" excluded the Board, the statutory context and section 26 required the deeming provision to prevail for the relevant tax allowance. On that basis, the Board was entitled to development rebate without creating the reserve required by proviso (b) to Explanation 2 of section 10(2)(vib).

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Issues: Whether the Punjab State Electricity Board was a licensee within the meaning of the Electricity (Supply) Act, 1948, so as to be entitled to development rebate under the Indian Income-tax Act, 1922 without creating the reserve contemplated by proviso (b) to Explanation 2 of section 10(2)(vib).

Analysis: The relevant proviso exempted a company being a licensee within the meaning of the Electricity (Supply) Act, 1948 from the requirement of creating a development rebate reserve. The definition of licensee in section 2(6) of that Act excluded the Board, but section 26 provided that the Board would have all the powers and obligations of a licensee and that the Act would be deemed to be its licence. Reading the definition in the context of the Act as a whole, and giving effect to the statutory language of section 26, the Board was treated as a licensee for the purpose of the proviso.

Conclusion: The Board was a licensee within the meaning of the Act and was entitled to development rebate without creating the reserve under proviso (b) to Explanation 2 of section 10(2)(vib).

Ratio Decidendi: Where a statute deems a body to possess the powers and obligations of a licensee and declares the Act to be its licence, the body may be treated as a licensee for the relevant tax exemption or allowance notwithstanding an exclusion in the general definition clause, if the context so requires.

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