TaxTMI 
TaxTMI 
1991 (12) TMI 78
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....income of the assessee. The assessee had created the necessary reserve and that was verified. The ITO in his order under section 155 of the Act has observed that the assessee had subsequently debited investment allowance reserve account and credited to the capital account and that the assessee was required to show cause why the investment allowance should not be withdrawn under the provisions of....
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....hat mere debiting investment allowance reserve account and crediting the capital account would not be sufficient for the ITO to withdraw investment allowance under section 155(4A) of the Act. Section 155(4A) lays down the circumstances in which investment allowance granted initially can be withdrawn subsequently. One of the circumstances is that the assessee does not utilise the amount credited to....
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....machinery. In this connection it would be pertinent to refer to the decision of the Allahabad High Court in the case of CIT v. Sri Hemantpat Singhania, HUF [1991] 105 Taxation 284 in which it has been held that when subsequent to the creation of reserve for development rebate, if that reserve is transferred to capital account, the development rebate allowed cannot be withdrawn because such transfe....