TMI Blog1964 (1) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... 10(2)(vib), as it stood at the relevant time, had not been made? 2. Whether the direction given to the Income-tax Officer at this stage that the said allowance may be granted to the assessee, on production of the books before the Income-tax Officer, is justified? The facts giving rise to this reference are these: The assessee (a Hindu undivided family) had business in cement and fertilisers. The family had also a business in bus transport and lorry service. Besides, it owned two rice mills. For the assessment year 1959-60 the relevant accounting period being the previous financial year, the assessee submitted a return showing a loss of ₹ 20,441 in respect of the business. That loss was ascertained, after deducting, inter al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enough if the assessee carries it out even later. After all, what is required by the statute is that there must be book entries in support as a kind of only a follow up of the assessee's claim. The Income-tax Officer is directed to compute the development rebate on the new lorry MDF 1636 and the new bus MDF 1219 on the assessee producing his books before him, containing the reserve entries. We are unable to accept this view. Section 10 brings to charge the profits of the business of an assessee earned during the year of account. Sub-section (2) enables the assessee to make certain deductions or to obtain certain allowances in the computation of profits. Clause (vib) to that section, which was originally introduced by the Finance A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rent from the terms of the proviso that the object of the legislature is allowing a development of the assessee's business from out of the reserve fund. The entries in the account books required by the proviso are not an idle formality. The assessee being obliged to credit the reserve fund for a specific purpose, he cannot draw upon the same for purposes other than those of the business, and if the assessee were a company for exemption, that amount could not be distributed by way of dividend. It is also clear from the terms of the proviso that the reserve should be made at the time of making up the profit and loss account. The Tribunal was clearly in error when it held that it would be open to the assessee to readjust the account by mak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... governing purpose in the Act except what the plain terms of the statute itself say. In other words, it will not be competent for a court, in construing a taxing enactment, to presume in favour of an exemption from the tax, apart from what the plain words of the statute provide. In Cape Brandy Syndicate v. Inland Revenue Commissioners [1921] 1 K.B. 64, 71 Rowlatt J. said: ....in a taxing Act one has to look merely at what is clearly said. There is no room for any intendment. There is no equity about a tax. There is no presumption as to a tax. Nothing is to be read in, nothing is to be implied. One can only look fairly at the language used. This rule, in our view, is as much applicable in the construction of a charging section, as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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