https://www.taxtmi.com/caselaws?id=37332 Development rebate under sections 33 and 34 of the Income-tax Act, 1961 depends on compliance with the reserve condition, but a binding CBDT circular clarified that no statutory reserve is required in a year when the income computed before development rebate is a loss. Applying that clarification, the Kerala HC held that the assessee was entitled to the rebate despite not maintaining accounts or creating the reserve for the year, because no rebate would in any event be allowed in a loss year. The reference was answered in favour of the assessee and against the revenue. en-us Tue, 10 Jul 1979 00:00:00 +0530 Mon, 29 Mar 2010 11:17:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=37332 Development rebate under sections 33 and 34 of the Income-tax Act, 1961 depends on compliance with the reserve condition, but a binding CBDT circular clarified that no statutory reserve is required in a year when the income computed before development rebate is a loss. Applying that clarification, the Kerala HC held that the assessee was entitled to the rebate despite not maintaining accounts or creating the reserve for the year, because no rebate would in any event be allowed in a loss year. The reference was answered in favour of the assessee and against the revenue. Case-Laws Income Tax Tue, 10 Jul 1979 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=37332