TMI Blog1995 (5) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... as specifically laid down under section 32AB(4)(c) of the Income tax Act, 1961. 2. On the facts and in the circumstances of the case, the CIT (Appeals) erred in holding that the motor car is ' plant ' and not a ' road transport vehicle ' for the purpose of applicability of section 32AB of the Income-tax Act, 1961 and thereby allowing the deduction under section 32AB of the Act. The order of the CIT (Appeals) may be vacated and that of the Assessing Officer be restored." 2. The assessee had claimed deduction under section 32AB of a total sum of Rs. 41,195. Out of this, a deduction of Rs. 21,195 was on account of the price paid for the purchase of a car and Rs. 20,000 on account of repayment of principal amount taken as a term loan f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a car can be allowed under section 32AB. In support of his contention, the learned departmental representative relied upon the following decisions : 1. S. Mohan Lal v. R. Kondiah AIR 1979 SC 1132, 2. CIT v. Buhari Sons (P.) Ltd [1983] 144 ITR 12 (Mad.), 3. Mittal Ice Cold Storage v. CIT [1986] 159 ITR 18 (M.P.), 4. CIT v. Madgul Udyog [1994] 208 ITR 541 (Cal.), and 5. S.R.F. Finance Ltd v. CBDT [1994] 122 CTR (Delhi) 431. 4. As against this, it was submitted by the learned counsel for the assessee that the Motor Vehicles Act is the premier legislation which deals with the subject of motor vehicles and, therefore, in the absence of definition of the phrase ' road transport vehicle ' in the Income-tax Act, the only source from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t. For the proper discussion of the issue before us, it would be convenient to quote the relevant Head Notes of the various judgments relied upon by the learned departmental representative : 1. S. Mohan Lal's case-- " The expression business has not been defined in the A.P. Buildings (Lease, Rent Eviction) Control Act, 1960. It is a common expression which is sometimes used by itself and sometimes in a collocation of words as in ' business, trade or profession '. It is a word of large and wide import, capable of a variety of meanings. It is needless to refer to the meanings given to that term in the various dictionaries except to say that everyone of them notices a large number of meanings of the word. In a broad sense it is taken to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned to any classes of tenants nor is the right to evict under the Act limited to any class of landlords. There is no reason why a landlord who is a member of the legal or medical profession and who requires the premises for carrying on the practice of his profession should be wholly debarred from obtaining possession of the premises. It is impossible to discover any reason for so making a discrimination against the liberal professions. But, that would be the result if the expression ' business ' is given a narrow meaning. It would indeed be anomalous to hold that all the provisions of the Act including section 4 which provides for the determination of fair rent and section 10(1) which bars the eviction of tenants apply to non-residential bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es not define a word used in that Act, the Legislature must be taken to have used that word in its ordinary dictionary meaning. In common parlance, the words ' make ', ' manufactue ' and ' produce ' are all used as synonyms and they relate to the turning out of finished products by the shaping or combination of raw materials or parts. The meanings of words and expressions used in an Act must take their colour from the context in which they appear. The word ' manufacture ' and ' production ' occur in clause (b)(ii) of sub-section (2) of section 32A of the Act which provides that deduction for investment allowance is admissible to an assessee if the conditions laid down in that provision are fulfilled. One of those conditions is that the pl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... herefore, it would be treated as an expression of common parlance and popular usage. For construing its meaning, reference to the Motor Vehicles Act would not be appopriate or proper. It is of course true that Motor Vehicles Act is the premier legislation on the subject of motor vehicles, but then, for this reason alone, automatic reference to it for the purpose of construction of the terms and phrases occurring in other Acts would not be appropriate. The expressions ' motor car ', ' transport vehicle ' and ' public servicevehicle ' occurring in clauses(16), (33) and (25) respectively of section 2 of the Motor Vehicles Act, 1939 have been defined keeping in view the context of other definitions in the Act and also keeping in view the classi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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