TaxTMI 
TaxTMI 
1986 (8) TMI 2
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....its conferred by sections 33(1)(b)(B)(i) and 80-I of the Income-tax Act, 1961, for the assessment years 1968-69 to 1971-72. Section 33 of the Income-tax Act, 1961, provides for the grant of development rebate. Prior to April 1, 1968, section 33(1)(iii)(c)(A) of the Income-tax Act, 1961, provided: "(1) In respect of a new ship acquired or new machinery or plant (other than office appliances or road transport vehicles) installed after the 31st day of March, 1954, which is owned by the assessee and is wholly used for the purposes of the business carried on by him, a sum by way of development rebate, equivalent to-... (iii) in the case of machinery or plant installed after the 31st day of March, 1961-... (c) where the machinery or p....
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.... of development rebate as specified in clause (b) ...... (B) in the case of machinery or plant, (i) where the machinery or plant is installed for the purposes of business of construction, manufacture or production of any one or more of the articles or things specified in the list in the Fifth Schedule, (a) thirty-five per cent. of the actual cost of the machinery or plant to the assessee, where it is installed before the 1st day of April, 1970, and (b) twenty-five per cent. of such cost, where it is installed after the 31 St day of March, 1970. These provisions relate to development rebate. A deduction was also available to an assessee in respect of profits and gains from specified industries in the case of certain compani....
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....s meaning: " the business of generation or distribution of electricity or any other form of power or of construction, manufacture or production of any one or more of the articles or things specified in the list in the Fifth Schedule or the business of any hotel where such business is carried on by an Indian company and the hotel is for the time being approved in this behalf by the Central Government. " The word " Sixth " was substituted for " Fifth " by the Finance Act, 1968, with effect from April 1, 1969. With effect from April 1, 1964, the Fifth Schedule set forth a list of articles and things and items Nos. 7, 17 and 24 which possess some relevance to this case read as follows : " (7) Equipment for the generation and transmi....
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.... four years. The assessee claimed that it was entitled to the benefits conferred by those provisions for the aforesaid assessment years as a " priority industry ". It asserted that the wires manufactured by it were covered by the word " cables " employed in the articles and things specified in items Nos. 7, 17 and 24 of the Fifth Schedule for the assessment years 1966-67, 1967-68 and 1968-69, and items Nos. 7, 17 and 24 of the Sixth Schedule to the Income-tax Act for the assessment years 1969-70 to 1971-72. It produced expert evidence in support of its claim. The Income-tax Officer rejected the claim made by the assessee. An appeal to the Appellate Assistant Commissioner was dismissed. The assessee then appealed to the Income-tax Appellate ....
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....d them as copper and aluminium cables. Having regard to the material before it, the Appellate Tribunal found no reason to change its opinion from the view taken in the preceding assessment years that the manufacture of the cables attracted the benefits claimed by the assessee. Thereafter, at the instance of the Revenue, the Appellate Tribunal made a reference for the six assessment years to the High Court of Punjab and Haryana for its opinion on the following two questions: " Whether, on the facts and in the circumstances of the case, the assessee-company was entitled to the benefits conferred by the provisions of sections 33(1)(iii)(c)(A) and 80E of the Income-tax Act, 1961 ? 2. Whether, on the facts and in the circumstances of th....
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....plement, it was observed that the real test was not whether it was exclusively used for agricultural purposes but whether it was commonly so used and whether it was intimately and directly connected with agricultural operations. The point before us is whether the cables manufactured by the assessee qualify for inclusion in item No. 7 of the Fifth Schedule or the Sixth Schedule, as the case may be, having regard to the relevant assessment year. Item No. 7 speaks of equipment for the generation and transmission of electricity and such equipment includes transformers, cables and transmission towers. To appreciate what is comprehended in item No. 7, it is permissible to refer to a related entry, item No. 24, which refers to component parts o....