TaxTMI 
TaxTMI 
Allowance of development rebate-Clarification regarding
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....ion regarding the creation of statutory reserve for allowance of development rebate as follows:-- (a) In the case of certain industrial undertakings, particularly those in which there is Government participation either by way of capital, loan or guarantee, and where there are certain obligations by law or agreement about the maintenance of reserve for development purposes, the development rebate ....
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....ained at (a) above. In that case, the bank had not created any development rebate as such, although the books of accounts disclosed a substantial reserve under section 17 of the Banking Companies Act of 1949. On the claim of the bank that reserve had been created for purposes of claiming development rebate, the Supreme Court held that the reserve contemplated under the Income-tax Act was altogethe....
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....tent it was superseded by the aforesaid Supreme Court decision and the judgment of the Gujarat High Court in Surat Textile Mills Ltd. 3. It was also directed that past assessments be reviewed and suitable action taken to retrieve loss of revenue including securing of necessary disallowances by way of enhancement, etc., in appeals relying on the aforesaid judicial pronouncements. It would appear t....