JUDGMENT

V.G. Oak, C.J. - This is a reference u/s 66(1) of the Indian Income Tax Act, 1922 (hereafter referred; to as," the Act"). The assessee is a company manufacturing and selling rosin and turpentine. For a long time the company was using electricity on D.C. system. In order to reduce electricity charges the company decided to change over from D.C. system to A.C. system. The change involved a total expenditure of Rs. 1,11,407. The company claimed a deduction of Rs. 27,852 as development rebate. This claim was disallowed by the Income Tax Officer. The decision was upheld in appeal by the Appellate Assistant Commissioner. But the assessee succeeded before the Appellate Tribunal, Allahabad. The Tribunal held that the assessee was entitled to development rebate u/s 10(2)(vib) of the Act, The Tribunal was not sure whether all the equipments used in the change over was new. The case was, therefore, remanded to the Income Tax Officer to dispose of the claim of the assessee for development rebate on that footing. The appeal was partly allowed. At the request of the Commissioner of Income Tax, U. P., the Tribunal has referred the following question of law to this court :

" Whether, on the