1983 (8) TMI 27

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....ssessee is a nationalised bank. For the assessment years 1971-72 and 1972-73, the ITO allowed development rebate of Rs. 30,643 and Rs.61,596 respectively on" safe deposit locker cabinets". But the Addl. ClT, in proceedings taken under s. 263 of the I.T. Act, held that although the said cabinets should be regarded as " plant ", the assessee was not entitled to " development rebate " in view of the prohibition contained under s. 33(6) of the Act. The Commissioner, in other words, was of the opinion that the cabinets were installed in the office premises and, therefore, the assessee was not entitled to " development rebate " in respect thereof. Being aggrieved by the order of the Commissioner, the assessee appealed to the Income-tax Appella....

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....ous year, a sum by way of development rebate as specified in clause (b)." Section 33(6) provides : " 33(6) Notwithstanding anything contained in the foregoing provisions of this section, no deduction by way of development rebate shall be allowed in respect of any machinery or plant installed after the 31st day of March, 1965, in any office premises or any residential accommodation, including any accommodation in the nature of a guest house: Provided that the provisions of this sub-section shall not apply in the case of an assessee being an Indian company, in respect of any machinery or plant installed by it in premises used by it as a hotel, where the hotel is for the time being approved in this behalf by the Central Government. " ....

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....n the premises where banking business is carried on, no development rebate could be allowed. But, we do find considerable force in the second contention urged by Sri Kumar. The learned counsel has placed before us some guidelines issued by the National Institute of Bank Management in regard to the manner in which safe deposit lockers are to be installed. They are in these terms : The safe deposit lockers are installed in a fire proof steel cabinet; the said room has got a main door and a grill door. Both doors are made up of steel. In banking term, such special rooms are called strong rooms. All and sundry are not allowed access to the strong room. Daily register of attendance is also maintained wherein the hirer has to affix his signatu....