1991 (2) TMI 108

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....development rebate on additions to the plant and machinery made during the previous year in the businesses styled as Amar Tara Industries and Indian Cork Mills can be rejected on the ground that the businesses which were the proprietary concerns of the assessee were, with effect from March 1, 1963, within the previous year, converted into partnership concerns of which the assessee was one of the partners " The assessee was carrying on business under the name and style of Indian Cork Mills, Textile Overseas Corporation and Amar Tara Industries as sole proprietress. The previous year ended on March 31, 1963. Some time during the previous year, i.e., on March 1, 1963, all the three of her proprietary businesses were converted into partnersh....

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....hall, 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). . . " " 34(3)(b). If any ship, machinery or plant is sold or otherwise transferred by the assessee to any person at any time before the expiry of eight years from the end of the previous year in which it was acquired or installed, any allowance made under section 33 or under the corresponding provisions of the Indian Income-....

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....evious year in the businesses styled Amar Tara Industries and Indian Cork Mills even though during the previous year, i.e., on March 1, 1963, her aforesaid two proprietary businesses became partnership concerns. We reframe the question accordingly. For this purpose, it is necessary to examine the provisions of section 33(1), which we have reproduced earlier. To our mind, for the application of section 33, there are three conditions which need to be satisfied. They are : (i) that the ship, machinery or plant must be owned by the assessee ; (ii) is wholly used for the purposes of the business ; and (iii) the business must be, carried on by the assessee. In the absence of any dispute about the facts that the machinery, or plant was owned by....