1969 (10) TMI 4

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.....C. system. The change involved a total expenditure of Rs. 1,11,407. The company claimed a deduction of Rs. 27,852 as development rebate. This claim was disallowed by the Income-tax Officer. The decision was upheld in appeal by the Appellate Assistant Commissioner. But the assessee succeeded before the Appellate Tribunal, Allahabad. The Tribunal held that the assessee was entitled to development rebate under section 10(2)(vib) of the Act. The Tribunal was not sure whether all the equipments used in the change over was new. The case was, therefore, remanded to the Income-tax Officer to dispose of the claim of the assessee for development rebate on that footing. The appeal was partly allowed. At the request of the Commissioner of Income-tax, ....

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.... section 10(2) of the Act. Clause (vi) provides for depreciation of buildings, machinery and plant. Clause (via) deals with depreciation of buildings newly erected or of machinery or plant installed after March 31, 1948. It will be noticed that all these clauses (vi), (via), and (vib) use the words " machinery " and " plant ". The Tribunal rightly observed that there is a presumption that the legislature must have used the words " machinery " and " Plant " in various clauses of section 10(2) of the Act in the same sense. In Commissioner of Income-tax v. Mir Mohammad Ali, the assessee was a transport operator. The assessee replaced petrol engines in two buses by diesel engines incurring an expenditure of Rs. 18,544. The question arose whe....

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....cond paragraph of clause (vi) and clause (via), did not necessarily mean " fixed in position " but was also used in the sense of induct or introduce or placing an apparatus in position for service or use. Where an engine was fixed in a vehicle it was installed within the meaning of the expression in clauses (vi) and (via) of section 10(2) of the Act. The word " installed " must carry the same sense in clause (vib) of section 10(2) of the Act. The word " Plant " as used in sub-section (2) of section 10 of the Act has been defined in sub-section (5) of section 10 : " Plant includes vehicles, books, scientific apparatus and surgical equipment purchased for the purposes of the business, profession or vocation. " The definition of plant co....