1989 (5) TMI 22

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....essment year 1963-64, the following two questions of law have been referred to this court: " (1) Whether, on the facts and in the circumstances of the case, the Tribunal is right in holding that the Income-tax Officer was wrong in passing an order under section 154 of the Income-tax Act, 1961, withdrawing the development rebate in respect of electrical installations of the building of the assesse....

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....hat the said development rebate had been wrongly allowed in respect of the electric installations because the assets concerned were not wholly used for the purpose of the assessee's business. The Income-tax Officer, after issuing show-cause notice and giving the assessee an opportunity of hearing, passed an order under section 154 of the Act withdrawing the said development rebate. Aggrieved by t....

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....ties not having urged any fresh grounds before the Tribunal, the Tribunal upheld the order of the Appellate Assistant Commissioner. Development rebate in respect of machinery or plant can be allowed only where such machinery or plant has been "wholly used for the purposes of the business" carried on by the assessee. The Kerala High Court in CIT V. Ouchterlony Valley Estates (1938) Ltd. [1965] 58 ....