COMMISSIONER OF INCOME TAX Vs. JAGADEESCHANDRAN AND COMPANY

JUDGEMENT

(1.) WHETHER the assessee" is entitled to development rabate in respect of light fittings and water pipe fittings is the question in this reference. It relates to the assessment year 1961-62. The assessee is a registered firm during that year and has been running a hotel called Ashok Hotel in the City of Madras. The rebate claimed was disallowed by the Income-tax Officer on the ground that the light fittings and water pipe fittings formed part of the building. In regard to fans he thought that development rebate for them was expressly disallowed in the Act itself. The Appellate Assistant Commissioner substantially accepted that view. The Tribunal, however, held in favour of the assessee on the view that these items could be classified as plant. In its view the mere fact that these items were fitted to a building would not alter their character. Hence this reference of the questipn :

(2.) WE are unable to accept the Tribunal's view as incorrect. Our attention has not been invited to any specific provision in the Act, which excludes ceiling fans and pedestal fans from the purview of Section 10(2)(vib). Nor do we think that merely because the items in respect of which rebate is claimed have been fixed to the building, they would cease to be plant. That word has not been defined in the Act. But we find Lindley L.J. in Yarmouth v. France, 1887 19 QBD. 647 stating this at page 658 :