(1) THE following question of law was referred by the tribunal to. the high court in its opinion under Section 256(1 of the Income Tax Act. The

"WHETHER, on the facts and in the circumstances of the case, the pontoons and tugs are covered by the expression ship and therefore entitled to development rebates at a higher rate of 40% instead of 28 on the basis of plant?"

Section 32 of the Act deals with the depreciation of buildings, machine plant or furniture, owned by an assessee. Section 33 deals with development rebate. The rebate has to be allowed in respect of a new ship or the machinery or plant which has been owned by the assessee and is which used for the purpose of the business carried on by him subject to vacation conditions laid down in that section. In the case of a ship, the amount rebate allowable is 40% of the actual cost thereof to the assessee.

(2) THE only question is whether "pontoons" and "tugs" will come with the word "ship" (sic) has not been defined in the Act. However, in the of rates at which depreciation is admissible, the meaning of ship has given in Appendix 1 of the Income Tax Rules where "ship" was definition

"1. Ocean-going ships-