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TMI Blog2006 (1) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... brought forward investment allowance pertaining to the assessment years 1987-88, 89-90 and 90-91 amounting in all to Rs. 1.15 crores. The Assessing Officer, by order dated March 31, 1997, passed under section 143(3) of the Act, initially allowed a set off amounting to a sum of Rs. 98.27 lakhs. In the subsequent rectification order passed under section 154 of the Act, the amount of carried forward and set off investment allowance was varied to Rs. 98.59 lakhs. But, in the subsequent order dated October 12, 2000, passed under section 154 of the Act, the Assessing Officer withdrew the set off of brought forward investment allowance for the earlier years on the ground that the assessee had not fulfilled the statutory requirement of creating an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e, the Tribunal was right in holding that the assessee should be granted the benefit of section 80HHC as per its claim, as the quantification could not be considered under section 154?" As far as the first question is concerned, it is not in dispute that the issue is relating to the assessment year 1991-92, but the assessee claimed deduction from its current year income, of carried forward investment allowance in priority over the carried forward depreciation. As the claim of the assessee has been allowed, no portion of carried forward investment allowance would have been available for deduction in the current year. That apart, in view of the circular of the Central Board of Direct Taxes relating to development rebate, the Income-tax Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... credited shall be deemed to have been credited to the Investment Allowance Reserve Account of the previous year in which the deduction is admissible and such amount shall not be taken into account in determining the adequacy of the reserve required to be created by the assessee in respect of the previous year in which such further credit is made;" Hence, the Commissioner, as confirmed by the Tribunal, directed the Assessing Officer to allow the appellant an opportunity to credit the investment allowance reserve account by the requisite amount in compliance with the said circular and as contemplated under the Explanation to section 32A(4) of the Act, and if the assessee complies with such condition, directed the Assessing Officer to allow ..... X X X X Extracts X X X X X X X X Extracts X X X X
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