1985 (3) TMI 28

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....NGUPTA J.-This is a reference under section 256(1) of the Income-tax Act, 1961, for the assessment year 1969-70. For the said assessment year, the assessee claimed development rebate of Rs. 2,75,536. The Income-tax Officer disallowed the assessee's claim as no development rebate reserve had been created. When the matter came up in appeal before the Appellate Assistant Commissioner, it was submitte....

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.... Laikdihi Coal Co. Ltd. v. CIT [1973] 87 ITR 501 (Cal), that an assessee was not obliged to create a reserve fund in any year if it had no taxable income in that year for the purpose of carrying forward the development rebate in the following years. The Tribunal held that although the books may show profits, if the assessment results in nil income or loss, there will then be no obligation on the p....

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.... rebate carried over to the following year ? " It is not disputed that on the facts found by the Tribunal, the questions in this reference are concluded by the decision of this court in the case of West Laikdihi Coal Co. Ltd. v. CIT [1973] 87 ITR 501. Following the said decision, we answer the first question in the affirmative and in favour of the assessee. In view of the answer to the first qu....