9911796707
TMI Blog1967 (1) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment year is 1960-61, the accounting year whereof was the year ending 30th of October, 1959. During the said previous year, the assessee let out 829 kolhus, out of which 779 kolhus were old ones and 50 were new additions manufactured during the previous year. The original cost of the said additions of kolhus amounted to Rs. 15,032. New kharad machines were also added during the previous year whose original cost was Rs. 4,000. The assessee claimed development rebate in respect of the 50 new kolhus and kharad machines added during the previous year, but the claim was ignored by the Income-tax Officer. The assessee appealed to the Appellate Assistant Commissioner and contended, inter alia, that development rebate should have been allowe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and used for the purposes of the assessee's business of hiring. To support the conclusion that the installation and the user of the plant or machinery must be by one and the same person, reference was made by the Tribunal to the provisions of section 12(3) of the Act, which catalogues the allowances to which an assessee who lets on hire machinery belonging to him is entitled to and, as that makes no reference to the allowance of development rebate under section 10(2)(vib), it was concluded that, even if the hiring constituted a business under section 10, the development rebate would not be admissible. The order of the Appellate Assistant Commissioner was accordingly reversed and the appeal allowed. Hence, this reference at the instance of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rresponded to the old section 10(2)(vib), a specific provision was added excluding office appliance or a road transport vehicle definition of " plant ". In any case, kolhus are neither office appliance nor " vehicles " and, therefore, if not machinery would certainly be a " plant " and as such qualify for depreciation and development rebate provided the other conditions of section 10(2)(vib) are satisfied. There cannot also be much doubt that depreciation as well as development rebate could only be claimed by the person who is the owner of the property. Sub-clause (vi) of Sub-section (2) of section 10 makes it clear that depreciation can only be claimed by the person whose property is attached (sic). The words used are, " being the property ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o ; to set up and fix in position for use as such setting up or placing in position for service or use." What constitutes installation will depend upon the nature of the business and the article that has to be installed. A boiler in a factory cannot be said to be installed until it is set up and fixed in position for use as such. On the other hand, a truck or a car which is a plant or machinery within the meaning of section 10(5) of the Act would be installed the moment, it is set up or placed in poisition for service or use. Similarly, in the case of business which consists wholly of hiring of kolhus, the kolhus could be said be installed the moment they are set up or placed in position for service or use. It is the last of the meanings re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioners of Inland Revenue that in a taxing Act one has to look merely at what is clearly said. There is no room for any intendment ; there is no equity about a tax ; there is no presumption as to a tax nothing is to be read in, nothing is to be implied, one can only look fairly at the language used. The interpretation sought to be placed by the Tribunal and reiterated by the learned standing counsel before us would certainly require some words to be inserted into section 10(2) (vib) for which there can be no warrant. If the position was as simple as the Tribunal and the department would have it, then in no case would plant or machinery which is hired out ever qualify for development rebate. If that was the true position thethere would hav ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pment rebate on new cars purchased for this purpose was held to qualify for development rebate. In Commissioner of Income-tax v. Saraspur Mills Ltd. Shah J., as he then was, interpreted the word " installed " to also mean " inducted or introduced " and not necessarily " fixed in position " and held that a manufacturer of cloth who had purchased certain motor-cars and bicycles for use in its business was entitled to development rebate. In Commissioner of Income-tax v. Sri Rama Vilas Service (Private) Ltd. the Madras High Court has, following the decision of the Bombay High Court in Commissioner of Income-tax v. Saraspur Mills Ltd. held, that a bus or lorry can be said to be installed when it is set up for use or service upon its being put on ..... X X X X Extracts X X X X X X X X Extracts X X X X
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