Ajit K.Sengupta, J. - (1.) This reference at the instance of the Revenue under Section 256(1) of the Income-tax Act, 1961, relates to the assessment years 1972-73 and 1.973-74. The common question of law referred to this court is as follows : "Whether, on the facts and in the circumstances of the case, and on a correct interpretation of Section 33(6) of the Income-tax Act, 1961, development rebate is allowable in respect of meters installed in the residential premises and office premises of the consumers ?"
(2.) The facts leading to this reference are that the assessee is an electric supply undertaking. It supplies electricity to its customers. For the purpose of measuring the quantity of electricity consumed, meters belonging to the assessee are fixed at the office premises and residential accommodation of the consumers. Accordingly, in the course of the assessment proceedings, the assessee claimed development rebate in respect of such meters and the Income-tax Officer allowed the same. The Commissioner of Income-tax thought that the Income-tax Officer wrongly allowed the development rebate inasmuch as the meters were installed in the office premises or residential accommodation and, as such, the claim is not allowable in view of Sub-section (6) of Section 33 of the Income-tax Act, 1961. Accordingly, he directed withdrawal of development rebate for the two years under appeal.
(3.) On appeal, the Tribunal held that the assessee is entitled to development rebate on the meters which belonged to the assessee but not installed in the office premises or residential accommodation of the assessee and accordingly vacated the orders made by the Commissioner under Section 263 of the Act.;