| Case ID |
e00e9c54-388a-424b-ba09-233ac3415882 |
| Body |
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| Case Number |
TAX CASE No. 1219 OF 1977 |
| Decision Date |
Nov 22, 1982 |
| Hearing Date |
|
| Decision |
The Madras High Court ruled that Simpson & Co. Ltd. was entitled to a higher rate of development rebate for the machinery installed for constructing bus bodies. The court determined that a bus body qualifies as either an automobile ancillary or the result of constructing the body of a motor truck or bus. Therefore, the machinery used in this process is eligible for the higher development rebate under the Income-tax Act, specifically under section 33. The Tribunal's earlier decision was upheld, allowing the assessee's claim. |
| Summary |
In the case of Commissioner of Income Tax v. Simpson & Co. Ltd., the Madras High Court addressed the eligibility for a higher rate of development rebate under section 33 of the Income-tax Act, 1961. The case revolved around the assessee's claim for development rebate on new machinery used for the construction of bus bodies. The court concluded that the machinery in question fell under the categories specified in the Fifth Schedule of the Income-tax Act, thus entitling the company to claim the higher rebate. The judgment highlighted the importance of accurately categorizing machinery and understanding the definitions within tax law, particularly in the context of manufacturing and construction. The ruling reinforced the notion that tax benefits must be available to entities utilizing machinery for the production of goods that contribute to the automotive industry, thereby supporting economic growth. |
| Court |
Madras High Court
|
| Entities Involved |
Commissioner of Income Tax,
Simpson & Co. Ltd.
|
| Judges |
BALASUBRAHMANYAN, J.,
RATNAM, J.
|
| Lawyers |
J. Jayaraman,
Mrs. Nalini Chidambaram,
S.V. Subramaniam
|
| Petitioners |
Commissioner of Income Tax
|
| Respondents |
Simpson & Co. Ltd.
|
| Citations |
1983 SLD 865,
(1983) 141 ITR 35
|
| Other Citations |
Not available
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
33
|