Law:

Section:

Section 33 of the Income-tax Act, 1961 [Corresponding to section 10(2)(vib) of the Indian Income-tax Act, 1922] - Development rebate - Assessment year 1955-56 - Whether assessee-company was entitled to development rebate in respect of motor-cars and cycles purchased and used by it in year of account under section 10(2)(vib) of 1922 Act - Held, yes Words and phrases : Expression "installed" as occurring in section 10(2)(vib) of 1922 Act FACTS The assessee-company was carrying on business of manufacturing cloth. In the year of account 1954-55 the assessee's purchased certain motor-cars and bicycles for use in their business and claimed in the year of assessment 1955-56 development rebate under section 10(2)(vib) of 1922 Act. The income-tax authorities allowed the assessees the normal depreciation on the motor-cars and the bicycles under section 10(2)(vi) of 1922 Act. The Tribunal also allowed to the assessee's development rebate in respect of the motor-cars and bicycles holding that the motor-cars and bicycles were "plant" within the meaning of section 10(2)(vib) of 1922 Act and that the same had been "installed" after 31-3-1954, and had been wholly used for the purpose of the business carried on by the assessee. On reference: HELD The Legislature has given a special definition of the expression "plant" in sub-section (5) of section 10 of 1922 Act and by that definition vehicles, books, scientific apparatus and surgical equipment purchased for the purposes of the business, profession or vocation are expressly included within the definition; and in the absence of very strong indication to the contrary in sub-section (2) (vi) of section 10 of 1922 Act, the Court would not be justified in holding that notwithstanding the definition which is specially devised for sub-section (2), the expression "plant" will not include vehicles, books, scientific apparatus and surgical equipment, some of which by their very nature are incapable of being fixed in position at the time when they are worked or used. The expression "installed" is also used in the sense of "inducted or introduced", and if that be the sense in which that expression is used, there is nothing inconsistent in…

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