Allowance of development rebate. - Income Tax - 469/CBDT

INSTRUCTION NO. 469/CBDT October 27, 1972 Section(s) Referred: 33 Statute: Income - Tax Act, 1961 Kindly refer to instructions relating to allowance of development rebate contained in Board's circular F.No. 10/49/65-IT(A.I) dated 14-10-1965. 2. Development rebate may be allowed only if the reserve created is in conformity with the decision of the Supreme Court in the case of Indian Overseas Bank Ltd. Vs. C.I.T., reported in 77 ITR page 512 and that of the Gujarat High Court in the case of Surat Textile Mills Ltd. (80 ITR, page 1). The Board's instructions dated 14-10-1965 are accordingly withdrawn to the extent superceded by the aforesaid two judicial pronouncements. 3. Necessary instructions may be issued to I.T. Officers to complete the pending assessments on the lines indicated above. Past assessments should be reviewed as may be feasible for rectification immediately and the above noted stand taken in pending appeals for securing necessary disallowance by way of enhancement etc.