1993 (2) TMI 42

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... in sustaining the Appellate Assistant Commissioner's direction with regard to the weighted deduction under section 35B of the Income-tax Act, 1961 ?" It is an accepted position that in view of the decision of this court in I. T. R. No. 89 of 1977-(CIT v. Prakash Cotton Mills P. Ltd. [1991] 188 ITR 713), that is to say, in the case of the present assessee itself and dated February 22, 1991, this question requires to be answered in the affirmative and in favour of the assessee. The question is answered accordingly. The question which is referred to us at the instance of the assessee is as follows : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee-company was entitled only t .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... he Appellate Assistant Commissioner to the Income-tax Officer to allow development rebate to the extent that it is attributable to the actual reserve of Rs. 29,841. Before us, the assessee has relied upon the circular issued by the Central Board of Direct Taxes, dated October 14, 1965, as clarified by another circular of the Central Board of Direct Taxes, dated January 30, 1976. As per the later circular dated January 30, 1976, the original circular issued by the Central Board of Direct Taxes, dated October 14, 1965, dealt with three contingencies which are set out in paragraph 1 of that circular at (a), (b) and (c). We are concerned here with contingency (c) which is as follows : " 1(c). Where there was no deliberate contravention of t .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... subsequently amended retrospectively we need not, however, go into this aspect of the case relating to the binding nature of this circular at any length. We will assume for the sake of the present reference that part (c) of paragraph 1 of the circular dated January 30, 1976, is in force and the Department is bound to give the benefit of this part of the circular to the assessee. But in order that the assessee can claim the benefit of this part of the circular, it is contemplated that there should be no deliberate contravention of any provision of law by the assessee ; only then the Income-tax Officer is given the power to condone any genuine deficiencies subject to the assessee making good the deficiency through creation of additional reser .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X