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2011 (8) TMI 496 - HC - Income TaxSet off of investment allowance - Held that:- Year when profits are insufficient or there are no profits, creation of reserve was not mandatory.Sections 32A and 34 have been amended to secure that the condition of creation of reserve even in a year of loss or of insufficiency of profit as laid down by the Hon'ble Supreme Court will not be mandatory in respect of both development rebate and investment allowance and it is now provided that in considering whether the condition regarding creation of reserve is fulfilled or not, the reserve(s) created in the year in which the deduction is to be allowed and in any earlier year will be taken into account.
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