1982 (10) TMI 32

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....essee, M/s. Narang Diary Products, Lucknow, were entitled to certain development rebate during the assessment years 1965-66 to 1967-68, which remained unabsorbed. It claimed a set-off of that development rebate in the assessment year 1970-71. The ITO disallowed the claim of the assessee on the ground that it was not entitled to set off the rebate in respect of the machinery given by it on hire to ....

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.... Tribunal has stated the case and raised the following question of law for opinion of this court : " Whether, on the facts and in the circumstances of the case, the assessee was entitled to set off unabsorbed development rebate of the earlier years from the total income of the assessee in the assessment year 1970-71, u/s. 33(2) of the Income-tax Act, 1961, even though in this year the assessee ....

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....shall be carried forward to the following assessment year and so on. This sub-section nowhere lays it down that before unabsorbed rebate for particular year can be carried forward to a subsequent year, for being adjusted or accounted for, it is necessary that the assessee must continue to use the relevant assets exclusively in connection with its business. The only limitation placed by the section....