9911796707
TMI Blog1979 (1) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... y owning a number of shipping vessels. The assessment year with which we are concerned is 1959-60, the relevant accounting period being the year ending 30th June, 1958. During the accounting year ending 30th June, 1956, i.e., relating to the assessment year 1957-58, the assessee had issued bonus shares. In his assessment order for the assessment year 1959-60, the ITO worked out the rebate of corporation tax allowable to the assessee at Rs. 14,50,933. From this, however, he deducted a sum of Rs. 3,00,000 as withdrawal of rebate on account of the bonus shares issued during the relevant accounting year relating to the assessment year 1957-58. The deduction of the said amount was made in this particular assessment year for the reason that such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch it related. A number of decisions, which need not be set out here, were cited before the Tribunal. On behalf of the revenue, the departmental representative contended before the Tribunal that the provisions of the Finance Act were required to be applied whether there was assessable income or not. The revenue relied on the scheme of the Act and the language employed in the Finance Act for the assessment year under consideration. The Tribunal found the argument advanced on behalf of the assessee attractive at first glance, but in its view a careful scrutiny of the statutory provisions under consideration, viz., the respective Finance Acts, would suggest that the contention of the assessee was unsound and was required to be rejected. In its ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... may be fully set out : " All that the second proviso to Paragraph D of Part II of Schedule I to the Finance Act, 1959, provides for is that if there is any unabsorbed reduction of rebate in the assessment year 1958-59, then that can be taken into consideration while allowing rebate in the assessment year 1959-60. The provision does not enable the revenue to take into consideration any unabsorbed reduction of rebate for any year prior to 1958-59. There is no provision for the carry-over of any unabsorbed reduction of rebate from year to year. Where in the assessment of the respondent-company there was an un- absorbed reduction of rebate of Rs. 27,144 in the assessment year 1957-58, it had suffered a loss for the assessment year 1958-59 a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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