1998 (1) TMI 8 - SCH - Income Tax

Whether, the Appellate Tribunal was right in cancelling the order of the Income-tax Officer withdrawing the development rebate already allowed for the assessment years 1965-66 to 1972-73 consequent to the conversion of the assessee s proprietary business into a partnership firm - Since the point at issue is covered by the decision of this court in the case of Sunil Siddharthbhai v. CIT, we treat this question as a reference and answer it in the affirmative (sic) and in favour of the Revenue

Summary

The Supreme Court allowed the appeals and withdrew the development rebate under section 155(5) of the Income-tax Act, 1961, based on a previous court decision. The High Court was criticized for not directing a case to be stated before it under section 256(2) of the Income-tax Act. The decision was in favor of the Revenue.