(1.) THE matter here concerns the assessee's claim for initial depreciation under section 32 (1) (vi) of the Income-tax Act, 1961, in respect of an electric generator installed by it for its business.
(2.) THE assessee, Messrs. Dalmia Biscuits Limited, Rajpura, derives its income from manufacture and sale of biscuits. During the relevant assessment year 1976-77, the assessee installed and commissioned an electric generator for its business at a cost of Rs. 6,56,533 and then put forth a claim for initial depreciation for this generator under section 32 (1) (vi) of the Income-tax Act, 1961 (hereinafter referred to as "the Act" ). It is the declining of this claim by all the authorities under the Income-tax Act that has now led to the following question being referred for the opinion of this court, namely :
(3.) THE question posed has indeed to be answered in the affirmative, in favour of the Revenue and against the assessee in view of the clear and plain interpretation of the relevant statutory provision. The crucial words in section 32 (1) (vi) of the Act are "new machinery or plant Installed for purposes of business of generation or distribution, of electricity or any other form of power". The use of the words here "for purposes of business of" admit of only one interpretation, namely, that the machinery or plant installed must be for the purposes of business of generation or distribution of electricity or any other form of power. In other words, it is only where the business is of generation or distribution of electricity or any other form of power that the installation of new machinery or plant qualifies for initial depreciation in terms of section 32 (1) (vi) of the Act.