1978 (4) TMI 67

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....A C.J.--For the assessment years 1966-67 and 1967-68, the assessee-company claimed development rebate at the rate of 20%. The Income-tax Officer allowed the claim but to a lesser extent. Subsequently, the assessee applied for rectification under section 154 of the Act on the ground that it was entitled to be treated as a priority industry under s. 80-I of the Income-tax Act and, as such, entitled ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ion of the development rebate. At the instance of the department, the Tribunal has referred for our opinion the following three questions of law : " 1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is legally correct in holding that the Income-tax Officer should have allowed the assessee an opportunity to create further reserve under s. 34(3)(a) of the In....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ity to create further reserve under s. 34(3)(a) of the Act to meet the deficiency, if any. In Commissioner of Income-tax v. Modi Spinning & Weaving Mills Co. Ltd. [1973] 89 ITR 304 (All), a Bench of this court has held that the assessee is entitled to an opportunity to create a reserve so long as the assessment proceedings are not over. The Act does not specify any period of time within which the ....