Allowance of development rebate--Creation of reserve under s. 34(3)(a) of the Income-tax Act, 1961

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....sp; All Commissioners of Income-tax. Subject : Allowance of development rebate--Creation of reserve under s. 34(3)(a) of the Income-tax Act, 1961. Sir, The Board had an occasion to consider the question whether the development rebate reserve created in respect of a particular machinery or plant in the year of installation or use and/or in the year or years subsequent thereto, to the exten....

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.... same way in the following year or years but no portion of the unabsorbed rebate is to be carried forward for more than eight assessment years immediately succeeding the relevant assessment year. Section 34(3)(a), inter alia, provides that deduction of development rebate under section 33 shall not be allowed unless an amount equal to 75 per cent. of the development rebate to be actually allowed is....