Development rebate withdrawal applies when assets or reserves transfer on cessation of an assessee, causing loss of rebate. Section 34(3)(b) permits withdrawal of development rebate where the asset on which the rebate was allowed is sold or otherwise transferred before expiry of the limitation period. On firm dissolution the original assessee ceases to exist and a new firm becomes owner of assets and reserve, which constitutes a transfer; transfers effected as steps in business reorganisation or expansion (e.g., proprietor or joint family forming a partnership) will attract withdrawal if within the limitation period.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Development rebate withdrawal applies when assets or reserves transfer on cessation of an assessee, causing loss of rebate.
Section 34(3)(b) permits withdrawal of development rebate where the asset on which the rebate was allowed is sold or otherwise transferred before expiry of the limitation period. On firm dissolution the original assessee ceases to exist and a new firm becomes owner of assets and reserve, which constitutes a transfer; transfers effected as steps in business reorganisation or expansion (e.g., proprietor or joint family forming a partnership) will attract withdrawal if within the limitation period.
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