Law:

Section:

Section 33(1)(b)(A) of the Income-tax Act, 1961 - Development rebate - Allowance/rate of - Whether trawlers would fall within meaning of 'ship' under section 33 and assessee-company purchasing and using the same for its business would be entitled to development rebate at forty per cent under section 33(1)(b)(A) - Held, yes Words and phrases - W ord 'ship' occurring in section 33 of the Income-tax Act, 1961 Facts The assessee-company was carrying on the business of catching and selling fish from the seas with the help of powered mechanised trawlers. In the relevant assessment year, the assessee claimed development rebate at 40 per cent under section 33(1)(b)(A) in respect of new trawlers purchased and used by it during the relevant previous year, on the ground that the trawlers were 'ships' within the meaning of that provision. The ITO held that the trawlers were not 'ships' within the meaning of section 33 and that the assessee was entitled to development rebate only at 15 per. cent under section 33(1)(b)(B)( iv)(b). On appeal, the Tribunal upheld the ITO's order. On reference : Held The word 'ship' is not defined in the Act. The word will, therefore, have to be understood in the context in which it occurs in the statute, the purpose of the provision and other relevant considerations. Webster's Dictionary gives the meaning of the word 'trawl' as a long line, sometimes more than a mile in length and supported by buoys, from which short lines with baited hooks are suspended ; used especially in deep sea fishing, as for cod or haddock: a large bag-like net dragged along the bottom of a fishing, bank by a boat. As a verb 'trawl' means, to drag, to catch or take with a trawl It is from this the vessel gets its name as a trawler, once that trawls, a fishing boat which trails or drags a trawl. Thus, the word 'trawler' would come within the meaning of 'ship' as per the meaning given in the dictionary. Further, there is no distinction between sections 32 and 33 so far as the meaning of the word 'ship' is concerned. For the purpose of section 32 which provides for depreciation in respect of certain classes of vessels, Part I of Appendix I to the Income-tax Rules, 1962…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492