Law: Income Tax Act, 1961

Section: 256(1),Fifth Schedule,33,34,37

Income-tax--- Development rebate---Mining Machinery---Higher Development rebate available for mining machinery---Miners' safety cap lamps, Mining Batteries and components do not fall within the meaning of "Mining Machinen"---Not entitled, to Higher Development rebate---Income-tax Act, 1961, S. 33(1); Sched. V. item No.(4)---Industries (Development and Regulation) Act, 1951, Sched. 1, item (6). From a perusal of section 33(1) of the Income-tax Act, 1961, and item No.(4) of Schedule V to the Act, it is clear that development rebate is available under this section only in respect of such machinery or plant which is installed for the purpose of the business of construction, manufacture or production of any "one or more of the articles or things specified in the Fifth Schedule" and no other item. The word "machinery" means something more than a collection of ordinary tools and that it should mean some mechanical contrivances which, by themselves or in combination with one or more other mechanical contrivances, by the combined movement and inter-dependent operation of their respective parts generate power, or evoke, modify, apply or direct natural forces with the object in each case of effecting so definite and specific a result. Applying the above test, mining safety cap lamps cannot be held to be mining machinery. Such goods at the most can be termed as articles or tools required for use in the mining industry. Therefore, an assessee is not entitled to claim development rebate at a higher percentage on machinery for the manufacture of miners, safety cap lamps, mining batteries and components as these items do not fall within the meaning of the expression "mining machinery" as used in item No.(4) of the Fifth Schedule to the Act. CIT v. Standard Batteries Ltd. (1993) 201 ITR 977 (Bom.) fol. CIT v. Mir Mohammad Ali (1964) 53 ITR 165 (SC) and Corporation of Calcutta v. Chairman, Cossipore and Chitpier Municipality (1922) AIR 1922 PC: 27; (1922) ILR 49 Cal 190 (PC) ref. JUDGMENT Dr. B.P. SARAF, J: --By this reference under section 256(1) of the Income Tax Act, 1961, made at the instance of the assessee the Income-tax Appellate Tribunal has referred the following…

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