S.C : Whether, on the facts and in the circumstances of the case, it has been rightly held by the Tribunal that the provisions of s. 79 would not apply to unabsorbed depreciation and development rebate?

Counsel Appeared

Ranbir Chandra, K.C. Dewan & B.K. Prasad, for the Appellant

ORDER

BY THE COURT :

This appeal, by certificate granted by the Madras High Court under s. 261 of the IT Act, 1961, arises out of a reference made by the Tribunal in which the following question was answered by the High Court in favour of the assessee and against the Revenue :

“Whether, on the facts and in the circumstances of the case, it has been rightly held by the Tribunal that the provisions of s. 79 would not apply to unabsorbed depreciation and development rebate?”

2. We have heard Shri Ranbir Chandra, learned counsel appearing for the Revenue, in support of the appeal. One of conditions for the applicability of s. 79 is that there should be change in the shareholding of the company. Shri Ranbir Chandra has not been able to show that a finding has been recorded by any authority regarding the change of shareholding of the company for the applicability of s. 79. We, therefore, do not find any merit in the appeal and it is accordingly dismissed. No order as to costs.

[Citation : 247 ITR 800]