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.

(4.) At the hearing, it has been contended on behalf of the Revenue that the meters were installed in the office premises or residential accommodation and, accordingly, the benefit of development rebate cannot be allowed to the assessee. On the other hand, the contention of Dr. Pal, on behalf of the assessee, is that so long the meters are not installed by the assessee-company in its own office premises or in the residential accommodation belonging to the assessee-company, development rebate cannot be denied to the assessee.

(5.) We have given our anxious consideration to the respective contentions. The substantive part of Section 33(6) of the Income-tax Act, 1961, provides as follows : "Notwithstanding anything contained in the foregoing provisions of this section, no deduction by way of development rebate shall be allowed in respect of any machinery or plant installed after the 31st day of March, 1965, in any office premises or any residential accommodation, including any accommodation in the nature of a guest-house."

(6.) The only question which calls for determination is whether, on a proper construction of Sub-section (6) of Section 33 and in the context of the opening words of that section, the expression "any office premises or any residential accommodation" would cover only the office premises or the residential accommodation of the assessee or in the assessees occupation but the office premises or residential accommodation of persons other than the assessee as well.

(7.) The assessee is an electric supply undertaking. Under Section 20(2) of the Indian Electricity Act, 1910, the assessee is under a statutory duty to supply energy to its consumers. The meters in question installed by the assessee-company are, admittedly, plants of the assessee-company. The object of Sub-section (6) of Section 33 is no doubt to discourage the assessee from claiming development rebate of plant and machinery such as air-conditioners, frigidaires, room heaters, electric fans, etc., and other similar machinery in their own office premises and residential accommodation. It is not the intention that the development rebate would be disallowed where the said plant or machinery is installed in any office premises or residential accommodation of any person other than the assessee which is installed as a part of the business activity of the assessee-company. The provisions of Section 33(6) can only be construed to mean office premises or residential accommodation of the assessee, either belonging to the assessee or otherwise in the occupation or use of the assessee. They would not, in our view, have such wide import as to include office premises or residential accommodation belonging to a person other than the assessee concerned. Our attention has been drawn to Section 36(1)(ii) of the. It is submitted by Dr, Pal that under this provision, deduction of any sum paid as bonus or commission for services rendered is allowable with respect to an employee of the assessee only, although the word used there is an "employee" and not "an employee of the assessee". Similarly, Section 37(3) of theprovides for the allowance of maintenance charges of residential accommodation including any accommodation in the nature of a guest house and that there also the residential accommodation or the guest house is not specifically stated to be the one as belonging to the assessee.

(8.) On behalf of the Department, reliance was placed on the impugned order of the Commissioner. It was submitted that Section 33(6) does not speak of the office premises or residential accommodation including guest house as belonging to or used by the assessee and that as such the provision has to be construed to apply to all office premises or residential accommodation irrespective of the fact whether or not such office premises or residential accommodation belong to the assessee or are in use or occupation of the assessee.

(9.) Ordinarily, plant and machinery which is meant for use by the assessee is installed in the premises of the assessee concerned. The present case is one of the exceptional cases in which the plant belonging to the assessee viz., the meters, had to be installed in the premises of other persons, i.e., the consumers of the assessee. Installation of such meters is a part of the business activity of the assessee. The plants in question are not those which are installed with a view to have more amenities, comfort and enjoyment in the offices or residences in the form of air-conditioners, frigidaires, room-heaters and the like. They are not indispensable. But unless meters are installed in the office premises or residental accommodation of the customers, essential supply of energy cannot be made and the assessee would not be able to carry on its business.

(10.) Having regard to the entire provision of Section 33 and its context, we are of the view that the "office premises or residential accommodation" referred to in Sub-section (6) of Section 33 relates to the office premises or residential accommodation of the assessee concerned, that is, either belonging to the assessee or in its occupation otherwise, i.e., on lease or licence, etc. The disallowance contemplated by Section 33(6) does not relate to the plant and machinery installed in the office premises or residential accommodation of persons other than the assessee concerned.

(11.) For the reasons aforesaid, we answer the question in this reference in the affirmative and in favour of the assessee. There will be no order as to costs.