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Issues involved:
1. Entitlement to higher rebate on automobile ancillaries 2. Claim of development rebate on tube-well Entitlement to higher rebate on automobile ancillaries: The Tribunal referred questions of law to the High Court regarding the assessee's entitlement to a higher rebate on automobile ancillaries, including those used in assembling its own cars, for the assessment year 1971-72. The High Court, relying on a previous decision, upheld the assessee's entitlement to the higher rebate, as per the Income-tax Act. Claim of development rebate on tube-well: The Income-tax Officer initially denied development rebate to the assessee on tube-wells constructed during the assessment year. However, the Appellate Assistant Commissioner directed the allowance of development rebate based on previous orders. The Revenue appealed to the Tribunal, arguing that a tube-well did not qualify as a plant or machinery for development rebate. The Tribunal, considering various legal interpretations and definitions, concluded that tube-wells could be considered as plants if they were essential for production or industrial labor. The Tribunal upheld the assessee's claim for development rebate on the tube-wells. The High Court, in its analysis, emphasized the broad interpretation of the term "plant" under the Income-tax Act, citing relevant legal precedents. It was noted that the Revenue did not challenge the factual findings by the Tribunal regarding the utilization of the tube-well for business purposes. Therefore, the High Court affirmed the Tribunal's decision, stating that the tube-wells set up by the assessee qualified as plants under the Act, entitling the assessee to development rebate. In conclusion, the High Court answered both questions in favor of the assessee, highlighting the wide application of the term "plant" and the importance of factual findings in determining eligibility for development rebate.
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