9911796707
TMI Blog1971 (2) TMI 31X X X X Extracts X X X X X X X X Extracts X X X X ..... ., GOPAL SINGH. JUDGMENT The Income-tax Appellate Tribunal, Delhi Bench " C " has referred the following question of law for our opinion : " Whether, on the facts and circumstances of the case, the assessee was entitled to a development rebate on the costs of the moulds installed by the assessee during the accounting years relevant to the assessment years 1962-63 and 1963-64 ? " The asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... more. On the basis of this debit entry, it claimed that it was entitled to the development rebate under section 33 of the Act. This contention has failed right up to the Tribunal. While dealing with this matter, the Tribunal observed as follows : " Looking to the facts of the instant case, debiting the cost of the moulds to the profit and loss account only meant that the profit to that extent ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied in holding that no reserve account had been created as required under the law and consequently, development rebate could not be allowed. " The assessee then applied to the Tribunal for statement of certain questions of law, but only the question, to which we have made a reference, has been referred for our opinion. The learned counsel for the assessee contends that by merely making the deb ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to a reserve account to be utilised by him during a period of ten years next following for the purposes of the business of the undertaking, except .... ' The creation of the reserve contemplated by this provision is a condition precedent for obtaining the allowance of development rebate. " The reason for the creation of the reserve is stated by the Madras High Court in Commissioner of Incom ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd could not be treated as a capital expenditure. This question has not been referred for our opinion. It also does not arise out of the Tribunal's order and, therefore, we cannot pronounce upon its validity in the present proceedings. For the reasons recorded above, the question referred to us is answered in the negative, that is, against the assessee and in favour of the department. The revenu ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
