1998 (5) TMI 14

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..... , Ahmedabad, has referred the following question for the opinion of this court under section 256(1) of the Income-tax Act, 1961. "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in coming to the conclusion that notwithstanding the provisions of section 43A(2), the assessee was entitled to development rebate in respect of the increase in the cost of asset .....

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..... penditure to be capital expenditure. The Tribunal in the process was following the decision of this court in Arvind Mills Ltd. v. CIT [1978] 112 ITR 64. In Arvind Mills Ltd.'s case [1978] 112 ITR 64, this court came to the conclusion that the additional liability in respect of the repayment of loan borrowed by the assessee for acquiring imported machinery during the relevant previous year which .....

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..... is court in Arvind Mills Ltd.'s case [1978] 112 ITR 64, was challenged before the Supreme Court and has been reversed by the decision of the Supreme Court in the case of CIT v. Arvind Mills Ltd. [1992] 193 ITR 255, in which while construing the provisions of section 43A, the Supreme Court held that once sub-section (1) of section 43A is attracted, its application qua development rebate was exclude .....

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