Allowance of development rebate--Creation of reserve under s. 34(3)(a) of the Income-tax Act, 1961

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..... 3)(a) of the Income-tax Act, 1961. Sir, The Board had an occasion to consider the question whether the development rebate reserve created in respect of a particular machinery or plant in the year of installation or use and/or in the year or years subsequent thereto, to the extent of availability of book profits, can be taken into account for the purposes of section 34(3)(a) of the Income-tax Act .....

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..... ight assessment years immediately succeeding the relevant assessment year. Section 34(3)(a), inter alia, provides that deduction of development rebate under section 33 shall not be allowed unless an amount equal to 75 per cent. of the development rebate to be actually allowed is debited to the profit and loss account of the relevant previous year and credited to the reserve account. 3. After cons .....

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