ORDER

1. This appeal by certificate granted under Section 261 of the Income Tax Act, 1961 (hereinafter referred to as "the Act") is directed against the judgment of the Kerala High Court dated 26-2-1980 in Income Tax Reference No. 24 of 1978 which relates to the Assessment Year 1969-70.

2. The assessee is a registered firm dealing in seafoods having its head office at Cochin and a branch at Bombay. During the accounting year relevant to the Assessment Year 1969-70 the assessee had put up a freezing, cold storage and ice plant at their Bombay branch and the same was temporarily let out by them to a sister concern. The income derived by such letting was treated and assessed as the business income of the assessee for the relevant accounting year. The assessee claimed that they were entitled to development rebate in respect of cold storage and ice plant at 35% as provided for under Section 33(1) (b) (B) (i) (a) of the Act. The Income Tax Officer allowed development rebate at the rate of 20% on the ground that the assessee had not been using the plant for processing goods but had actually let it out. The said order of the Income Tax Officer was affirmed in appeal by the Appellate Assist