2005 (4) TMI 31

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..... Commissioner of Income-tax (Appeals), which has been confirmed by the Tribunal - Tribunal was correct in law in confirming the order of the CIT (Appeals) directing the Assessing Officer to allow deduction under section 80HHC, subject to various conditions being duly complied with
Judge(s) : R. K. AGRAWAL., RAJES KUMAR. JUDGMENT The Income-tax Appellate Tribunal, Allahabad, has referred the following two questions of law under section 256(1) of the Income-tax Act, 1961, hereinafter referred to as "the Act", for the opinion of this court: "Whether, on the facts and circumstances of the case, the Tribunal was correct in law in confirming the order of the Commissioner of Income-tax (Appeals) directing the Assessing Officer to allow dedu .....

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..... dings. In support of the aforesaid reasoning reliance was placed on the decision of this court in the case of CIT v. Modi Spinning and Weaving Mills Co. Ltd. reported in [1973] 89 ITR 304. The aforesaid order of the Commissioner of Income-tax (Appeals) has been affirmed by the Tribunal in the appeal filed by the Revenue. Heard Sri R.K. Upadhyaya, learned standing counsel for the Revenue. No one appears on behalf of the assessee. Learned standing counsel for the Revenue very fairly conceded that the issue involved in the present reference is covered by the decision of this court in the case of CIT v. Modi Spinning and Weaving Mills Co. Ltd. reported in [1973] 89 ITR 304 and by a subsequent decision of the apex court in the case of Karimjee .....

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..... tries required by proviso (b) to section 10(2)(vib) must be made, no statutory provision prescribing such period has been placed before us. All that the law requires is that a development reserve be created in compliance with proviso (b), and there is nothing in the object for which the reserve is created from which a definite period for such compliance can be inferred. In our opinion a company may make the necessary entries for the purpose of complying with proviso (b) to section 10(2)(vib) at any time before the return of income is filed under the Income-tax Act. Even if the entries are made thereafter, during the pendency of the assessment proceedings, the Income-tax Officer may take them into consideration." The second proviso to secti .....

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