Development rebate entitlement requires concurrent debit and reserve credit in year of use; reopen assessments unless time-barred. Allowance of development rebate requires a debit in the profit and loss account and a corresponding credit to a reserve account in the same previous year the machinery or plant is installed or first put to use; existence of profits that year is not necessary. Assessments granting development rebate or investment allowance should be reopened unless reopening is time-barred, in which case recovery of any demand on this account should not be pressed.
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 entitlement requires concurrent debit and reserve credit in year of use; reopen assessments unless time-barred.
Allowance of development rebate requires a debit in the profit and loss account and a corresponding credit to a reserve account in the same previous year the machinery or plant is installed or first put to use; existence of profits that year is not necessary. Assessments granting development rebate or investment allowance should be reopened unless reopening is time-barred, in which case recovery of any demand on this account should not be pressed.
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