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TMI Blog1981 (4) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... e following question has been referred to this court: " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that no part of the amount credited to the development rebate reserve account could be said to have been utilised by the assessee for distribution by way of dividend or profit ? " This reference relates to the assessment year 1962-63. The fac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e already granted. He, hence, initiated proceedings u/s. 155(5) read with s. 154 of the I.T. Act, 1961. The assessee explained that the development rebate was, in fact, utilised for the purpose of business, namely, for the purpose of plant and machinery and repayment of loans taken from the National Industrial Development Corporation. It was submitted that the general reserve already had an old ba ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the proceedings initiated u/s. 155(5) read, with s. 154 of the I.T. Act, 1961, as even on merits the assessee's case appeared to be unassailable. The Tribunal found as follows: There was admittedly a substantial amount of Rs. 76,50,000 in the general reserve and even without any transfer of amount from the development rebate reserve the sum declared as dividends could well have been taken from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n any such distribution of dividends with amounts that had been earmarked as development rebate reserve. In the aforesaid circumstances, the Tribunal confirmed the order of the AAC. In that background, the question indicated above has been referred to us. Now, the facts found by the. Tribunal are purely questions of fact. The question posed before us has not challenged those findings of facts ..... X X X X Extracts X X X X X X X X Extracts X X X X
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