1981 (3) TMI 142

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....stment allowance of Rs. 16,609 claimed by the assessee in the assessment for asst. yr. 1978-79 and withdrawing development rebate for earlier two years aggregating to Rs. 4,11,623. It was found that the development rebate reserve was not adequate and the assessee had not complied with the opportunity of making good the shortfall in the accounts of calendar year 1977. The explanation of the assesse....

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....te contravention of the provisions, the ITO may condone genuine deficiencies subject to the same being made good by the assessee through creation of adequate additional reserve in the current year's books in which the assessment is framed." This circular merely reiterates the earlier instruction issued in 1965. The creation of the reserve in the current account is therefore good enough and the as....

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....peal. The ld. Deptl. Rep. relied upon the orders of the authorities below and claimed that the amendment was not made within the time allowed by the ITO. 3. We have carefully considered the records as well as the arguments. We do not find that the circular issued on 14th Oct., 1965 reiterated by a later circular on 30th Jan., 1976 (102 ITR 90 Statutes) would justify the consideration of the asses....