TMI Blog1974 (9) TMI 30X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Income-tax Officer the petitioner preferred a revision petition before the Commissioner of Income-tax (hereinafter referred to as "the Commissioner") under section 264 of the Act. The Commissioner dismissed the revision petition and confirmed the order of the Income-tax Officer. This writ petition is filed against the order of the Commissioner. The sole reason given by the Income-tax Officer and the Commissioner for disallowing the claim of the petitioner is that the petitioner which is not an Indian company and which is not approved by the Central Government as stated in the proviso to sub-section (6) of section 33, was not entitled to the rebate under section 33(1)(a) and (b) (B) (iv)(b) of the Act. The relevant part of section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me being approved in this behalf by the Central Government." On a true construction of the provisions extracted above it has to be held that the ground on which the authorities below declined to allow the rebate claimed by tbe petitioner is untenable. A close study of section 33 makes the point clear. The extent of rebate claimable in respect of machinery and plant by an assessee running a hotel which is approved by the Central Government is set out in section 33(1)(b)(B)(ii). The case of the petitioner who is an assessee running a hotel not falling under the above clause falls under the residuary clause, namely, section 33(1)(b)(B)(iv). Sub-section (6) of section 33 which was enacted by the Finance Act, 1965, provided that notwithsta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... installed by it in the premises used by it as a hotel where the hotel is for the time being approved in this behalf by the Central Government. What the proviso means is that where the assessee which is an Indian company uses the premises as a hotel approved by the Central Government even though the plant or machinery installed is in the portion used as office premises, residential accommodation including any accommodation in the nature of a guest-house maintained by the assessee would still be entitled to claim the rebate notwithstanding sub-section (6) of section 33. The language of section 33 which has been amended from time to time has led to some confusion. It is no doubt true that the use of the expression " hotel " in the proviso has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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