https://www.taxtmi.com/caselaws?id=5274 SC upheld the HC's view that the assessee was not entitled to carry forward development rebate where the statutory reserve was not created in the previous year in which the machinery was installed or first put to use. It held that under s.33(1), read with s.34(3)(a) and its Explanation, creation of the requisite reserve by appropriate debit to the profit and loss account and credit to a reserve account in that relevant previous year is mandatory. Absent such reserve, development rebate cannot be "actually allowed." The appeal was dismissed without costs. en-us Tue, 28 Mar 1989 00:00:00 +0530 Wed, 03 Dec 2025 16:27:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=5274 SC upheld the HC's view that the assessee was not entitled to carry forward development rebate where the statutory reserve was not created in the previous year in which the machinery was installed or first put to use. It held that under s.33(1), read with s.34(3)(a) and its Explanation, creation of the requisite reserve by appropriate debit to the profit and loss account and credit to a reserve account in that relevant previous year is mandatory. Absent such reserve, development rebate cannot be "actually allowed." The appeal was dismissed without costs. Case-Laws Income Tax Tue, 28 Mar 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=5274