TMI Blog1997 (8) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... chedule, being "automobile ancillaries". According to the appellant, the machinery which was installed was being used not only for the manufacture of items falling in the Fifth Schedule but also for the manufacture of some other items. Whereas the respondent had claimed allowance of development rebate in respect of the assessment year 1969-70 at the rate of 35 per cent. the Income-tax Officer held that inasmuch as the machinery was also being used for the manufacture of some other items not falling under the Fifth Schedule, therefore, the rate of development rebate should be restricted to 20 per cent. only. Being aggrieved, the respondent succeeded in the appeal filed before the Appellate Assistant Commissioner. The Department filed an ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t rebate at the rate of 35 per cent. Section 33(1)(a) and (b) with which we are concerned read as follows : " 33. (1)(a) In respect of a new ship or new machinery or plant (other than office appliances or road transport vehicles) which is owned by the assessee and is wholly used for the purposes of the business carried on by him, there shall, in accordance with and subject to the provisions of this section and of section 34, be allowed a deduction, in respect of the previous year in which the ship was acquired or the machinery or plant was installed or, if the ship, machinery or plant is first put to use in the immediately succeeding previous year, then, in respect of that previous year, a sum by way of development rebate as specified in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of 35 per cent. of the actual cost of the machinery. In the instant case, the machinery was installed before April 1, 1970. It cannot be disputed that it was installed for the purpose of manufacture of nuts, bolts and screws for automobiles falling under item No. (20) in the Fifth Schedule being "automobile ancillaries". These items were in fact manufactured. Section 33(1)(b) does not state that the machinery which has been installed for the manufacture or production of one or more of the articles specified in the Fifth Schedule should be used solely or exclusively for the manufacture of that/those article/articles. As long as the machinery, which is installed, manufactures any of the articles specified in the Fifth Schedule, the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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