1971 (2) TMI 31

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....eferred the following question of law for our opinion : " Whether, on the facts and circumstances of the case, the assessee was entitled to a development rebate on the costs of the moulds installed by the assessee during the accounting years relevant to the assessment years 1962-63 and 1963-64 ? " The assessee is a private limited company engaged in the business of manufacturing glass button....

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....ment rebate under section 33 of the Act. This contention has failed right up to the Tribunal. While dealing with this matter, the Tribunal observed as follows : " Looking to the facts of the instant case, debiting the cost of the moulds to the profit and loss account only meant that the profit to that extent had been depleted. It did not mean that an amount equal to the debit was available for ....

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.... consequently, development rebate could not be allowed. " The assessee then applied to the Tribunal for statement of certain questions of law, but only the question, to which we have made a reference, has been referred for our opinion. The learned counsel for the assessee contends that by merely making the debit entry regarding the cost of the moulds, it is entitled to a development rebate. ....

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....ollowing for the purposes of the business of the undertaking, except .... ' The creation of the reserve contemplated by this provision is a condition precedent for obtaining the allowance of development rebate. " The reason for the creation of the reserve is stated by the Madras High Court in Commissioner of Income-tax v. Veeraswami Nainar. The observations quoted below from that judgment we....