1959 (6) TMI 14

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....h Court of Judicature at Bombay under section 66(1) of the Indian Income-tax Act. 2. The assessee is a public limited company. It manufactures cloth. It has also a dyeing plant. In the year of account it purchased motor-cars and cycles for the use of its business and claimed that it was entitled to development rebate as provided under section 10(2)(vib) of the Income-tax Act. Section 10(2)(vib) reads as under:                "Such profits or gains shall be computed after making the following allowances, namely:--          (vib) in respect of machinery or plant being new, which has been installed after the 31st day of March,....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Joshi, for the Commissioner. N. A. Palkhivala with Dwarkadas, for the assessee. JUDGMENT SHAH, J.- This assesses are a limited company carrying on the business of manufacturing cloth. In the year of account 1954-55 the assesses purchased certain motor-cars and bicycles for use in their business and claimed in the year of assessment 1955-56 development rebate under section 10(2)(vi) of the Income-tax Act. The Income-tax authorities allowed the assesses the normal depreciation on the motor-cars and the bicycles under section 10(2)(vi). The Tribunal also allowed to the assesses development rebate in respect of the motor-cars and bicycles holding that the motor-cars and bicycles were "plant" within the meaning of section 10(2)(vib)....