STANDARD BATTERIES LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) BY this reference under S. 256(1) of the IT Act, 1961, made at the instance of the assessee, the Tribunal has referred the following question of law to this Court for opinion :

(2.) THE assessee is a public limited company and its business is to manufacture automobile ancillaries, equipment for generation of electricity, etc. The assessment year involved in this reference is 1971 72, the relevant accounting year being the year ended on 30th June, 1970. The dispute in this case relates to disallowance of the claim for development rebate at a higher rate in respect of machinery used in manufacture of miners' safety cap lamps, mining batteries and components. The assessee's case is that these items are covered by item No. (4) of the Fifth Schedule to the IT Act, 1961 ("the Act"), and as such, under S. 33 of the Act, it is entitled to development rebate at a higher rate in respect of manufacture of these items.

(3.) FOR a proper appreciation of the controversy before us, it may be expedient to set out some of the relevant provisions of the Act which have a bearing on this case. Sec. 33 of the Act deals with devolopment rebate. The relevant portion of this section, (as it stood at the relevant time) read :