1998 (6) TMI 70

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....he Tribunal was right in law in holding that the assessee was entitled to a higher development rebate at the rate of 25 per cent. as the machineries installed for manufacturing heavy duty cranes were covered by the provision of section 33(1)(b)(B)(i) of the Income-tax Act, 1961?" We have heard Mr. R. V. Desai, for the Revenue, who submits that the controversy in this case is covered by the ratio of the decision of this court in the case of the assessee itself in CIT v. Western Mechanical Industries Pvt. Ltd. [1991] 187 ITR 265. We have perused the above decision. In that case, the controversy was whether the assessee-company which was engaged in the activity of manufacturing of heavy duty cranes could be regarded as a priority industr....

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....eral industries, such as the equipment required for various "unit processes" :--- (2) Conveying equipment---bucket elevators, skip hoists, cranes, derricks and the like... " In the light of the above provisions, this High Court enquired whether heavy duty cranes of the kind manufactured by the assessee were specialised equipment which could be classified under item No. 8-A and not general items of machinery which were required to be classified under item No. 8-B. On consideration of the facts of the case, it was observed : "From the material which has been accepted by the Appellate Assistant Commissioner and the Tribunal for the assessment year 1972-73, it appears that the cranes manufactured by the assessee are made to specificati....

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.... the purposes of the business carried on by him, there shall, in accordance with and subject to the provisions of this section and of section 34, be allowed a deduction in respect of the previous year in which the ship was acquired or the machinery or plant was installed or, if the ship, machinery or plant is first put to use in the immediately succeeding previous year, then, in respect of that previous year, a sum by way of development rebate as specified in clause (b). (b) The sum referred to in clause (a) shall be---.... (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 specif....