COMMISSIONER OF INCOME TAX Vs. J THOMAS AND CO PVT LTD
HIGH COURT OF CALCUTTA
COMMISSIONER OF INCOME-TAX
J. THOMAS AND CO. PVT. LTD.
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Deb, J. -
(1.)The following question is involved in this reference under Section 256(1) of the Income-tax Act, 1961 :
" Whether, on the facts and in the circumstances of the case, the asses-see is eligible for development rebate under Section 33 of the Income-tax Act, 1961, with reference to the lifts and the central air-conditioning plant in Nilhat House ? "
(2.)The facts stated by the Tribunal may be briefly stated as follows :
(3.)The assessee carries on business as a tea broker. It constructed a multi-storied building with lifts and central air-conditioning system. The assessee occupied certain portion of this building and let out its remaining portions to several tenants, who paid monthly rents and also separate sums for using the lifts and for enjoying the benefits of the air-conditioning system. 'The rental income was assessed in the hands of the assessee under Section 22 of the Act which was confirmed by the appellate authorities. The assessee claimed deductions for development rebate under Section 33(1) of the Act in respect of the airconditioning plant and the lifts. The Income-tax Officer disallowed the said claim but it was ultimately allowed by the Tribunal by following the judgment of the Kerala High Court in the case of Commissioner of Income-tax v. Ouchtertony Valley Estates Ltd.  58 ITR 618 (Ker). The Tribunal also rejected the contention of the department that the case was fully covered in its favour by the decision of the Patna High Court in the case of Commissioner of Income-tax v. Dalmia Cement Ltd.  13 ITR 415 (Pat).
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