1988 (12) TMI 7

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.... circumstances of the case, cash allowances paid to the employees could be considered as outside the purview of section 40(a)(v) of the Income-tax Act, 1961, for the assessment years 1969-70 and 1970-71 ? (3) Whether, for the assessment years 1968-69 to 1970-71, on the facts and in the circumstances of the case, the assessee was entitled to depreciation on the cost of roads either as part of factory buildings or building by themselves at 2 1/2% ? (4) Whether, for the assessment years 1967-68 to 1970-71, on the facts and in the circumstances of the case, the assessee was entitled to development rebate in respect of durable machine tools on the footing that they Constituted 'machinery and plant' provided the necessary reserve had been creat....

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.... these durable tools on the footing that they constituted "plant and machinery". The Income-tax Officer rejected the claim. The Appellate Assistant Commissioner accepted it only in regard to one of the four years involved and the Tribunal accepted it in toto. It was contended that these durable tools cannot be considered to be plant and machinery. As the Tribunal very rightly pointed out, that since the Income-tax Rules, as amended, themselves considered such tools to be plant and machinery, we see no reason to interfere with the Tribunal's conclusion in this regard. It was contended before us, as it had been contended before the Tribunal, that such durable tools were not installed. The word "installed" does not necessarily mean embedded i....