The assessee fitted new diesel engines to two of its transport vehicles during the accounting year ending with March 31, 1952, relevant to the assessment year 1962 63, and claimed development rebate of Rs.
23,740/ on the companyt of the engines.
On this view the Tribunal affirmed the order disallowing the claim.
The Tribunal however dismissed a similar claim made by the assessee in the assessment year 1962 63 when the Income Tax Act, 1961 had companye into force.
The question in Civil Appeal No.
3,144/ on the companyt of these engines.
66 1 is Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the assessee was entitled to claim development rebate on new diesel engines fitted to vehicles.
33 of the Income Tax Act, 1961.
Two questions were referred to the High Court, one in each of these two cases both questions involve similar query though they are framed somewhat differently because of the companytrary decisions out of which the references arise.
Appeal by Special Leave from the Judgment Order dated the 4th September, 1967 of the Madras High Court in Tax Cases Nos.
During the accounting period ending with March 31, 1961, relevant to the assessment year 1961 62, the assessee fitted 11 new diesel engines to its vehicles and claimed development rebate of Rs.
The assesses in both cases is a private limited companypany, engaged in transport business and owns a fleet of lorries and buses.
In respect of the assessment year 1961 62, the Tribunal allowed the claim of the assessee for development rebate on the new diesel engines installed by the assessee in its vehicles.
In Civil Appeal No.
155 and 156 of 1965.
212 of 1970 referred under sec.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
The Income Tax Officer disallowed the claim and on appeal by the assessee the Appellate Assistant Commissioner affirmed the order of the Income tax Officer.
In both appeals the appellant is the Commissioner of Income Tax Central , Madras.
256 1 of the Income Tax Act, 1961, relates to the assessment year 1962 63 and reads Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that development rebate was number allowable on the new diesel engines installed on road transport vehicles.
211 and 212 of 1970.
A. Ramachandran and S. P. Nayar, for the appellant.
Swaminathan and S. Gopalakrishnan, for the respondent.
On further appeal to the Tribunal by the assessee, the Tribunal allowed the claim for development rebate on the view that new diesel engines fitted to vehicles were machinery installed within the meaning of sec 10 2 vi b of the Income Tax Act, 1922.
211 of 1970 which relates to the assessment year 1961 62 the question referred under sec.
The Income tax Officer disallowed this claim and his order was affirmed by the Appellate Assistant Commissioner on appeal.
256 1 of the Income Tax Act, 1961.
The two appeals relate respectively to assessment years 1961 62 and 1962 63.
66 1 of the Income Tax Act, 1922, and the other under sec.
The Judgment of the Court was delivered by GUPTA, J. These two appeals by special leave arise out of two references, one under sec.
