1989 (2) TMI 90

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..... d of development rebate. The assessee here is a company manufacturing steel ingots. During the assessment year 1973-74, it suffered losses. Development rebate at the rate of 25 per cent. was claimed in respect of machinery worth Rs. 29,52,262. This claim was declined by the Income-tax Officer on the ground that no development rebate reserve has been created by the assessee. On appeal, however, t .....

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..... here it was held that where the total income had been computed before allowing development rebate and there is a loss, there is no legal obligation to create any statutory reserve in that year as no development rebate is actually to be allowed in that year and that the assessee could not, on that account, be denied the benefit of development rebate in the subsequent assessment years when profit is .....

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