1990 (10) TMI 25

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..... al in the relevant year before it is claimed as unabsorbed in any subsequent year ?" Relevant facts giving rise to the above questions of law are being stated hereinafter. The present reference relates to the assessment year 1974-75. During this assessment year, the assessee had claimed deduction of Rs. 13,752 as unabsorbed development rebate which he had carried forward from the earlier assessment year 1973-74. The Income-tax Officer rejected the claim pertaining to the said deduction on the ground that, in law, the assessee did not furnish any return of his income for the assessment year 1973-74 since the same was filed beyond the period prescribed under section 139(4) of the Income-tax Act, 1961 (hereinafter to be referred to as "the A .....

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..... r plant installed after March 31, 1964, which is owned by the assessee and is wholly used for the purpose of business carried on by him and that allowance of the deduction is subject to the provisions of section 34 of the Act. Clause (a) of subsection (3) of section 34 of the Act provides that the deduction referred to in section 33 shall not be allowed unless an amount equal to seventy-five per cent of the development rebate to be actually allowed is debited to the profit and loss account of the relevant previous year and credited to reserve account to be utilised by the assessee during a period of eight years next following for the purposes of the business of the undertaking, other than for distribution by way of dividend or profits or fo .....

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..... required to be allowed as a deduction from the total income of this assessment year. The Income-tax Officer denied this benefit to the assessee only on the ground that, in the absence of a valid return, no assessment was made for the assessment year 1973-74 and, therefore, the amount of development rebate was not quantified by the authorities under the Act by way of making assessment for that assessment year, and, therefore, the assessee was not entitled to carry forward of the development rebate, as claimed. In substance, according to the Income-tax Officer, on the facts of the present case, the assessee lost his right of claiming deduction on account of development rebate once for all. In my view, the reasoning given by the Income-tax Of .....

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