TMI Blog1996 (9) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... 16 of the Fifth Schedule to the Income-tax Act, 1961 ? " For the assessment year 1973-74, in the reassessment made by the Income-tax Officer, the Income-tax Officer reduced the development rebate on the pulp plant machinery to 15 per cent. from the rate of 25 per cent. adopted in the original assessment, on the ground that the pulp produced by the assessee was for the manufacture of rayon yarn and hence did not fall under item No. 16 of the list mentioned in the Fifth Schedule. Under item No. 16 of the Fifth Schedule of the Act, machinery manufacturing paper and pulp, including newsprint is entitled to 25 per cent. development rebate. In other cases, the development rebate would be 15 per cent. According to the Income-tax Officer, the pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pulp. Heard learned counsel appearing for the assessee, who supported the order passed by the Tribunal. Before us, learned senior standing counsel appearing for the Department, submitted that inasmuch as " pulp " is appearing in between the " paper " and " newsprint ", the pulp should be meant for manufacture of paper only. If it is for any other purpose, the assessee would not get higher development rebate of 25 per cent. In the present case, inasmuch as the assessee is using the pulp for manufacturing yarn, the assessee is not entitled to higher development rebate of 25 per cent. In order to support this submission, reliance was placed upon the decision of this court in CIT v. Vasan Publications (P.) Ltd. [1986] 159 ITR 381. Accordin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the definition of newspaper production plant and machinery. In the matter of tax relief, it is for the Legislature to decide which particular industry producing which particular articles needs special treatment by way of special benefits and, in such a matter, it would not be possible for the court to place an elastic interpretation and enlarge the scope of the relief for, in that event, the court will be legislating in fiscal sphere and granting relief which the Legislature did not expressly grant. In the absence of a special definition of ' newspaper ' in the Income-tax Act or the Rules, the expression has to be construed in its popular sense and not in any special or technical sense, i.e., the sense in which the ordinary man in the str ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to higher development rebate. Therefore, if the assessee shows that the assessee is manufacturing paper, pulp and newsprint, the assessee is entitled to higher development rebate. To say that the pulp manufactured by the assessee should be utilised only for the purpose of manufacturing paper and then alone the assessee is entitled to higher development rebate of 25 per cent., is reading something which is not stated in the Schedule. Therefore, if the assessee manufactures paper, newsprint along with pulp, the assessee would be entitled to higher development rebate on the machinery manufacturing the abovesaid three items. After the pulp was manufactured, how it is going to be used, is not the concern of the Department while granting highe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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