1982 (1) TMI 123

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....ppeals) in the case of Wilson Industries for the assessment year 1978-79. 2. The assessee is a registered firm engaged in the manufacture of springs. It had claimed investment allowance to the extent of Rs. 56,633 at 25 per cent of cost of machinery at Rs. 2,26,533. The assessee had omitted to make a reserve as required under section 32A of the Income-tax Act, 1961 ("the Act"). The omission was....

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....ded that an assessee may be allowed to rectify the mistake before the assessment only where there is an insufficient profits and not where there is total failure to make any provision. The learned departmental representative repeated this argument and claimed that the decisions relied upon were cases of insufficient reserve. 3. We have carefully considered the records as well as the arguments. ....

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...., we are unable to appreciate rather the ultra-technical stand of the authorities in claiming that even in the same year such rectification cannot be done in the accounts of the same year once the return is filed and not thereafter. In the case of a firm unlike that of a company, there are no statutory formalities required for reopening the profits and loss account and making further adjustments. ....