1979 (1) TMI 50

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....ctual appropriation of the profit for the said year was only to the extent of Rs. 63,516 because there was an excess provision for the previous year to the extent of Rs. 33,206. Before the ITO, the contention of the assessee was that the excess provision for the earlier year should be taken into account while considering the development reserve created for the assessment year 1962-63. The ITO, however, proceeded to determine the development rebate on the footing that a reserve in the sum of Rs. 63,516 only was created. He, therefore, allowed a proportionate amount of development rebate to the extent of Rs. 84,689. The appeal filed by the assessee was rejected by the AAC who held that the claim for development rebate was allowable only on....

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....India:..." In view of the provisions of s. 34(3)(a), before an assessee can claim the full amount as development rebate, it must be shown that an amount of 75% of such development rebate is debited to the profit and loss account of the relevant previous year. The only question which, therefore, arises for the purposes of the decision of the question referred to us is whether the assessee had debited the required 75% of the development rebate to the profit and loss account in respect of the assessment year 1962-63. The copy of the profit and loss account for the assessment year 1962-63, which is annex. " B " to the statement of the case, contains an entry as follows : " Development Rebate Reserve Rs. Provision 1961 96,722 Less....