9911796707
TMI Blog1973 (2) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... e(s) : K. S. HEGDE., H. R. KHANNA. and P. JAGANMOHAN REDDY. JUDGMENT The judgment of the court was delivered by HEGDE J.--- This appeal by certificate arises from the decision of the Calcutta High Court in a reference under section 66(1) of the Indian Income-tax Act, 1922 (to be hereinafter referred to as the " Act "). The question referred to the High Court for its opinion reads : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee, having not been assessed to super-tax for the assessment year 1958-59, the unabsorbed reduction in rebate under clause (i)(a) of the second proviso to Paragraph D of Part II of the First Schedule to the Finance Act, 1957, could not be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment for the assessment year 1958-59 a loss of Rs. 73,920 was determined and no corporation tax was levied for that year. It was contended before the Income-tax Officer that the unabsorbed reduction in rebate for the year 1957-58 could only be carried forward and set off against the rebate for the assessment year 1958-59 under the provisions of the Finance Act, 1958, and as there was no rebate available for the assessment year 1958-59, the unabsorbed reduction in rebate exhausted itself and could not be further set off against the rebate available for the assessment year 1959-60. This contention was rejected by the Income-tax Officer. In appeal, the Appellate Assistant Commissioner confirmed the decision of the Income-tax Officer b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd (b) is such a company as is referred to in sub-section (9) of section 23A of the Income-tax Act with a total income not exceeding Rs. 25,000 ; (ii) a rebate at the rate of 40 per cent. on so much of the total income as consists of dividends from a subsidiary Indian company and a rebate at the rate of 30% on the balance of the total income shall be allowed in the case of any company which satisfies condition (a) but not condition (b) of the preceding clause ; (iii) a rebate at the rate of 40% on so much of the total income as consists of dividends from a subsidiary Indian company and a rebate at the rate of 20% on the balance of the total income shall be allowed in the case of any company not entitled to a rebate under either of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced to nil. We are unable to accept this contention as correct. In our opinion, all that provision provides foe is that, if there is any unabsorbed reduction of rebate in the assessment year 1958-59, then that can be taken into consideration while allowing rebate in the assessment year 1959-60. We are unable to read into the provision in question a power to the revenue to take into consideration any unabsorbed reduction in rebate for any year prior to 1958-59. That is the view taken by the Calcutta High Court in the case mentioned earlier. The Calcutta High Court opined in that case that the second proviso to Paragraph D of Part II of the First Schedule to the Finance Act, 1959, provides that the amount of rebate to be allowed under clauses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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