TMI Blog2001 (3) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... on the items of plant and machinery costing less than Rs. 750?" The factual position in a nutshell is as follows: The assessee a public limited company claimed deduction under the first proviso to section 32(1)(ii) in respect of items of plant and machinery costing less than Rs. 750 each, while computing its total income. The assessee also claimed development rebate in respect of such new items of plant and machinery. The Income-tax Officer (in short "the ITO"), held that the development rebate could not be allowed in respect of plant and machinery whose total value has been allowed to be written off under the proviso to section 32(1)(ii). The matter was carried in appeal before the Appellate Assistant Commissioner (in short "the AAC"). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ry, plant, or furniture, other than ships covered by clause (i) such percentage on the written down value thereof as may in any case or class of cases be prescribed: Provided that where the actual cost of any machinery or plant does not exceed seven hundred and fifty rupees, the actual cost thereof shall be allowed as a deduction in respect of the previous year in which such machinery or plant is first put to use by the assessee for the purposes of his business or profession." "33. Development rebate.--(1)(b) The sum referred to in clause (a) shall be (A) in the case of a ship, forty per cent. of the actual cost thereof to the assessee; (B) in the case of machinery or plant,-- (i) where the machinery or plant is installed for the pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... led before the 1st day of April, 1970, and (b) fifteen per cent. of such cost, where it is installed after the 31st day of March, 1970. (1A) (a) An assessee who, after the 31st day of March, 1964, acquires A any ship which before the date of acquisition by him was used by any other person shall, subject to the provisions of section 34, also be allowed as a deduction a sum by way of development rebate at such rate or rates as may be prescribed, provided that the following conditions are fulfilled, namely:-- (i) such ship was not previous to the date of such acquisition owned at any time by any person resident in India; (ii) such ship is wholly used for the purposes of the business carried on by the assessee; and (iii) such other co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r cost for each plant and machinery to get the benefit. The grant of development rebate in terms of section 33(1)(b) is not dependent on the rate of depreciation allowable under section 32 of the Act but as per Parts I and II of Appendix I to the Income-tax Rules, 1962 (in short "the Rules"). It would not make any difference even if the rate of depreciation is different. Though learned counsel for the Revenue submitted that both the sections are intended to further a particular object and not different objects, we find no substance in it. The two sections are intended to achieve different objectives. It is to be noted that allowance of development rebate under section 33 is hedged with several conditions and even if it is allowed once it ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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