9911796707
TMI Blog1981 (3) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... ere was any material before the Tribunal to come to the finding that there existed no balance-sheet of the assessee before the assessment was completed ? 2. Whether, on the facts and circumstances of the case, the Tribunal has been right, in law, in holding that the requirements of section 34(3)(a) were duly satisfied so as to qualify the assessee to claim development rebate of Rs. 7,18,208 under section 33(1)(a) of the Incometax Act, 1961 ? The brief facts giving rise to this reference are these. The assessment year of the assessee, that is, the Haryana State Minor Irrigation and Tubewell Corporation Ltd., Chandigarh, was 1971-72, which commenced on April 1, 1971. The assessee is a company in which the public are substantially interest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... their appeals before the Tribunal where the assessee pressed its claim for full development rebate of Rs. 7,18,208 whereas the Revenue contended that the AAC could not, in law, allow the assessee's claim to development rebate, even in part. The Tribunal took the view that the assessee's balance-sheet, as on March 31, 1971, was prepared after the statutory auditing as required under s. 619 of the Companies Act, 1956, only on May 22, 1973, and this was done after the completion of the assessment by the ITO on January 31, 1973. Since the said balance-sheet admittedly credited to the reserve account the full amount as required under s. 34(3)(a) of the Act, the assessee was clearly entitled to the development rebate in question. The plea of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase [1972] 86 ITR 387, which has also been followed in CIT v. Rita Mechanical Works [1977] 108 ITR 552 (P H), is fully applicable to the facts of the present case. We have heard the learned counsel for the parties at great length. It has been clearly held by this court in Sardar Singh Sachdeva's case, as follows (headnote): " It is not necessary that entries about development rebate should be made in the accounts on or before the last day of the accounting year or even before the preparation of the profit and loss account. It is open to the assessee to make the entries at any time before the assessment is completed. The entries become final only when the assessment is made. Till then, they are in a fluid state and any defect or error ..... X X X X Extracts X X X X X X X X Extracts X X X X
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