Bombay H.C : Whether, on the facts and circumstances of the case, the Tribunal was right in allowing carry forward of development rebate in spite of the fact that the assessee had not created any development rebate reserve during the relevant previous year as contemplated by s. 34(3)(a) of the IT Act, 1961 ?

Counsel Appeared

Jetly, Mrs. Manjula Singh & K.C. Sidhwa, for the Revenue

P. BHARUCHA, J.:

Mr. Jetley, learned counsel for the Revenue, has fairly conceded that the question that arises for consideration in this reference made at the instance of the Revenue has to be decided against the Revenue in view of an earlier judgment of this Court.

2. The question reads thus :

“Whether, on the facts and circumstances of the case, the Tribunal was right in allowing carry forward of development rebate in spite of the fact that the assessee had not created any development rebate reserve during the relevant previous year as contemplated by s. 34(3)(a) of the IT Act, 1961 ? “

3. The question is answered in the affirmative and in favour of the assessee having regard to the judgment of this Court in Indian Oil Corporation Ltd. vs. S. Rajagopalan, ITO (1973) 92 ITR 241.

[Citation : 186 ITR 427]