1980 (9) TMI 18

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.... and in any event before the assessment was completed ? " The relevant assessment year is 1966-67. The assessee filed the return of income on February 17, 1967, declaring income of Rs. 30,506. The assessee did not file a copy of the profit and loss account or balance-sheet along with the return. The assessee also did not claim any particular amount as deduction by way of development rebate. The assessee, however, added a note making a request that development rebate as may be allowable may be given as a deduction. The development rebate to which this note referred related to installation of machinery in Nirmal Talkies, owned by the assessee. The machinery installed in the talkies was purchased for Rs. 71,386. The development rebate which....

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....reation of any asset outside India. There is no doubt that the assessee must comply with the requirement contained in s. 34(3)(a) before be can be held to be entitled to claim development rebate. In other words, 75 per cent. of the development rebate to be actually allowed must be debited to the profit and loss account of the relevant previous year and credited to a reserve account as mentioned in s. 34(3)(a) for claiming the rebate. The question, however, is, whether if no reserve account is created at the time of filing of the return, can the assessee correct his accounts and create a reserve before the assessment for claiming the rebate. In Indian Overseas Bank Ltd. V. CIT [1970] 77 ITR 512 (SC), the Supreme Court dealt with the correspo....