TaxTMI 
TaxTMI 
1991 (2) TMI 84
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....elopment rebate as provided under section 33 (1) (b) of the Act ?" The assessee is a private limited company engaged in manufacture and sale of mild-steel rods (M. S. rods). (The record before us does not set out or clarify the actual process of manufacturing the said article. All that it shows is that the company manufactures M. S. Rods). For the assessment year 1973-74, the assessee claimed development rebate at 25% on extension or addition of plant and machinery made in the previous year relevant to the said assessment year, under section 33(1)(b)(B)(i)(b) of the Income-tax Act. The Income-tax Officer did not accept the said claim and allowed development rebate at the ordinary rate of 15% as provided in section 33(1)(b)(B)(iv)(b). The....
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...., 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 lst day of April, 1970, and (b) twenty-five per cent. of such cost, where it is installed after the 31st day of March, 1970 .... (iv) in any other case, (a) twenty per cent. of the actual cost of the machinery or plant to the assessee, where it is installed before the lst day of April 1970, and (b) fifteen per cent of such cost, where it is installed after the 31st day of March, 1970." The Fifth Schedule to the Act referred to in section 33(1)(b)(B)(i) contains as many as 33 items of articles a....
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....nd meaningless. Item No. (ii), as already set out hereinbefore, refers to "steel castings and forgings and malleable iron and steel castings". Steel castings and forgings would naturally be included within the expression "iron and steel (metal)", according to the assessee's contention. If it were so, the Legislature would not have put them under separate heading. In our opinion, therefore, the "iron and steel (metal)" refers to iron and steel in their original form and shape like billets, ingots, slabs, etc. This is the view taken by the Calcutta High Court in Indian Steel and Wire Products Ltd. v. CIT [1977] 108 ITR 802 (Cal). It has been rightly pointed out by the said court, following the decision of the Supreme Court in State of Madhya ....
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....fer to a decision of the Supreme Court in Hindustan Aluminium Corporation Ltd. v. State of U. P., AIR 1981 SC 1649 ; 48 STC 411. It was a case arising under the U. P. Sales Tax Act and the question before the court was whether aluminium rolled products and extrusions are "metals" within the meaning of the notification dated May 30, 1975, issued by the State of U. P. under section 3A(2) of the Sales Tax Act. Item No. 1 of the Schedule appended thereto, which prescribed lower rate of tax, read "All kinds of minerals, ores, metals and alloys except those included in any other notification issued under the Act". The assessee's contention was that the goods manufactured by it (aluminium rolled products and extrusions) fell within the expression ....
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.... nickel only or zinc only is regarded as belonging to a distinct entry in the notification from copper, tin, nickel or zinc in its unfabricated form." Though the said case arose under the Sales Tax Act, we are of the opinion that the reasoning behind the said observations is relevant to the question arising before us. As we have pointed out hereinabove, Parliament has treated "iron and steel (metal)" mentioned in item No. (1) of the Fifth Schedule to the Income-tax Act, as different articles or things from "steel castings and forgings" mentioned in item No. (ii) of the said Schedule. It is, however, brought to our notice that certain High Courts have taken a contrary view. A Division Bench of the Kerala High Court in CIT v. Mittal Ste....