9911796707
TMI Blog2001 (1) TMI 55X X X X Extracts X X X X X X X X Extracts X X X X ..... red the following question under section 256(1) of the Income-tax Act, 1961 (in short "the Act"), for the opinion of this court : "Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law in holding that the entry made for development rebate reserve after March 31, 1976, would meet the requirements of section 34(3) ?" For the assessment year 1976-77, the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as contended that section 34(3) of the Act did not contemplate any time limit for creating development rebate reserve in order to make a claim. Reliance was placed on the decisions of various High Courts, i.e., the Punjab and Haryana High Court in CIT v. Rita Mechanical Works [1977] 108 ITR 552, the Andhra Pradesh High Court in Veerabhadra Iron Foundry v. CIT [1968] 69 ITR 425, the Allahabad High ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... matter in further appeal before the Tribunal. On a consideration of the rival submissions, it was held by the Tribunal that there was preponderance of the authority in favor of the assessee and accordingly it was to be held that it is not necessary that entries in the accounts must be made on or before the last day of the accounting year. The Tribunal noticed that on the facts there was no dispute ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the accounts, more particularly before drawing up the profit and loss account and balance-sheet, According to him, when the original return was filed this admittedly had not been done and, therefore, the Tribunal was not justified in its view. The decision of the Allahabad High Court to which reference was made by the Tribunal, i.e., CIT v. Modi Spinning and Weaving Mills Co. Ltd. [1973] 89 ITR ..... X X X X Extracts X X X X X X X X Extracts X X X X
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