Ajit K.Sengupta, J. - (1.) In this reference under Section 256(2) of the Income-tax Act, 1961, for the assessment year 1963-64, the following two questions of law have been referred to this court : "(1) Whether, on the facts and in the circumstances of the case, the Tribunal is right in holding that the Income-tax Officer was wrong in passing an order under Section 154 of the Income-tax Act, 1961, withdrawing the development rebate in respect of electrical installations of the building of the assessee ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the matter in issue was debatable and, as such, it was wrongly brought into the ambit of Section 154 of the Income-tax Act, 1961, by the Income-tax Officer and in that view cancelling the order under Section 154 of the said Act."
(2.) The facts briefly stated are that, in the original assessment of the assessee for the year under consideration, the Income-tax Officer allowed development rebate on machinery and electric installations of the building which was partly let out. The machinery and electrical installations served a part of the building which was used for the purpose of the business as well as that part used by the tenants.
(3.) Later on, the Income-tax Officer was of the opinion that the said development rebate had been wrongly allowed in respect of the electric installations because the assets concerned were not wholly used for the purpose of the assessee's business. The Income-tax Officer, after issuing a show-cause notice and giving the assessee an opportunity of hearing, passed an order under Section 154 of the Act withdrawing the said development rebate.;