1976 (2) TMI 78

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..... of a sum of Rs. 1,94,272. 2. The assessment of the company was completed determining business loss at Rs. 49,301. The ITO allowed a sum of Rs. 6,52,132 to be carried forward on account of development rebate, there being no business profit to be adjusted against. The CIT found that the assessee had created a development rebate reserve only for Rs. 3,43,396. On the basis of this amount the admissi .....

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..... e. The assessee was entitled to carry forward Rs. 6,52,132 even if no reserve was created. The mere fact that it created reserve for part of the amount should not disentitle it to the full development rebate. This also supported by a Circular of the CBDT issuing instructions to the Officers to grant development rebate in cases of loss suffered by companies which have not created development rebate .....

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..... the order passed by the ITO is correct and requires no modification. The order of the CIT is set aside. 5. At the time of the hearing, the matter came up as to whether, in view of the provision made by way of development rebate reserve for part of the development rebate in the year when the assessee earns an income, a further reserve to the extent of this amount should be created. Though we are n .....

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