2001 (1) TMI 55

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....enue, the Income-tax Appellate Tribunal, Delhi Bench-B (the "Tribunal" in short), has referred the following question under section 256(1) of the Income-tax Act, 1961 (in short "the Act"), for the opinion of this court : "Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law in holding that the entry made for development rebate reserve after March 31, 1976, ....

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....erred an appeal before the Commissioner of Income-tax (Appeals) ("the CIT(A)" in short). It was contended that section 34(3) of the Act did not contemplate any time limit for creating development rebate reserve in order to make a claim. Reliance was placed on the decisions of various High Courts, i.e., the Punjab and Haryana High Court in CIT v. Rita Mechanical Works [1977] 108 ITR 552, the Andhra....

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....hat the view expressed by the Gujarat High Court was to be adopted. The assessee carried the matter in further appeal before the Tribunal. On a consideration of the rival submissions, it was held by the Tribunal that there was preponderance of the authority in favor of the assessee and accordingly it was to be held that it is not necessary that entries in the accounts must be made on or before the....

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....arned counsel for the Revenue submitted that the entries should be made before finalisation of the accounts, more particularly before drawing up the profit and loss account and balance-sheet, According to him, when the original return was filed this admittedly had not been done and, therefore, the Tribunal was not justified in its view. The decision of the Allahabad High Court to which referenc....