1970 (4) TMI 12

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....--At the instance of the assessee, the Income-tax Appellate Tribunal (Madras Bench), referred to the High Court of Madras, a statement of case under section 66(1) of the Indian Income-tax Act, 1922 (to be hereinafter referred to as " the Act "). The High Court answered one of the questions submitted along with the statement of case in favour of the assessee and the other in favour of the revenue. ....

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....o the assessment year 1959-60, the appellant claimed allowance by way of development rebate under proviso (b) of section 10(2)(vib) amounting to Rs. 1,37,836 in the computation of its business income. The admitted facts of the case are that during the accounting year relating to the assessment year, the appellant-company had transferred a sum of Rs. 6 lakhs from the profit and loss account to t....

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....ection 10(2)(vib) is a concession granted but that concession is made subject to fulfilment of certain requirements. The grant of this allowance is made subject to the conditions prescribed in proviso (b) to Explanation (2) to section 10(2)(vib). The relevant portion of that proviso reads : " ...an amount equal to seventy-five per cent. of the development rebate to be actually allowed is debite....

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....the paid up capital. Explanation.---For the purposes of this section, the expression ' net profits ' shall have the meaning assigned to it in sub-section (3) of section 87C of the Indian Companies Act, 1913 (VII of 1913). The reserve contemplated by that provision is a separate reserve. The amount transferred to that reserve cannot be utilised for business purposes. The reserve contemplated ....