TMI BlogAllowance of development rebate-Clarification regardingX X X X Extracts X X X X X X X X Extracts X X X X ..... alia, explained the position regarding the creation of statutory reserve for allowance of development rebate as follows:-- (a) In the case of certain industrial undertakings, particularly those in which there is Government participation either by way of capital, loan or guarantee, and where there are certain obligations by law or agreement about the maintenance of reserve for development purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idity of the position as explained at (a) above. In that case, the bank had not created any development rebate as such, although the books of accounts disclosed a substantial reserve under section 17 of the Banking Companies Act of 1949. On the claim of the bank that reserve had been created for purposes of claiming development rebate, the Supreme Court held that the reserve contemplated under the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 14th October, 1965, to the extent it was superseded by the aforesaid Supreme Court decision and the judgment of the Gujarat High Court in Surat Textile Mills Ltd. 3. It was also directed that past assessments be reviewed and suitable action taken to retrieve loss of revenue including securing of necessary disallowances by way of enhancement, etc., in appeals relying on the aforesaid judicial pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hyaya and in a more detailed discussion on merits in the writ petition of the Indian Oil Corporation Ltd. v. S. Rajagopalan4. 5. The Board have re-examined the issues involved and are of the view that except the clarification given in part (a) of para. 1 above, which stands superseded by the aforesaid decision of the Supreme Court, the clarifications given in paras. (b) and (c) or para. 1 above ..... X X X X Extracts X X X X X X X X Extracts X X X X
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