COMMISSIONER OF INCOME TAX Vs. SIMCO METERS LIMITED

JUDGEMENT

(1.) THE assessee is engaged in the manufacture of meters used for the measurement of electricity, which are three kinds, namely, (1) single phase meters. (2) poly phase meters, and (3) maximum demand indication 2 part meter. THE assessee claimed the benefit of development rebate as provided under Section 33(1)(a) of the Income-tax Act, 1961. Section 33 of the Income-tax Act allows development rebate in the case of machinery or plant installed for the purpose of the business of construction, manufacture or production of any one or more of the articles or things specified in the list in the Fifth Schedule. Section 33(1)(a) of the Income-tax Act, states :

(2.) SECTION 33(1)(b)(B) of the Act states :

(3.) WE will first take up question No. 2, i.e., whether the Appellate Tribunal was justified in holding and also had valid material to hold that the machinery and plant installed by the assessee are for the purposes of business of manufacture equipment for the generation and transmission of electricity ?