9911796707
TMI Blog1970 (10) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... h the assessment year 1961-62. The previous year is the financial year ending March 31, 1961. The assessee at all material times was carrying on business of manufacture and sale of chain links used in sugar mills. The assessee filed return dated 6th of July, 1961, and in that return no development rebate was claimed. With this return a profit and loss account had been filed. In the profit and loss account no claim was made for the development rebate. The assessee then filed a revised return dated 10th July, 1962. In this return again no claim was made for the development rebate. On 29th October, 1963, the assessee filed a second revised return. Along with this return he filed a revised profit and loss account in which development rebate of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted at any time provided the entries are passed in the books of the relevant year." The assessee was dissatisfied with the order of the Income-tax Officer and preferred an appeal to the Appellate Assistant Commissioner. The Appellate Assistant Commissioner also rejected the assessee's claim to the development rebate. The assessee then filed a further appeal to the Income-tax Appellate Tribunal and the Tribunal by its order dated August 8, 1967, accepted the assessee's contention and allowed the claim to the development rebate. The contention of the department to the contrary before the Tribunal based on the decision of the Madras High Court in Commissioner of Income-tax v. Veeraswami Nainar was not accepted. It was held that this decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the statutory provision If the intention of the legislature was that the entries had to be made before the close of the account year or before the completion of the profit and loss account, it would have said so. It is well-known that the profit and loss account cannot be made immediately on the close of the year. It depends upon the facts and circumstances of each case as to at what time the profit and loss account can be made. It is no doubt true that in the profit and loss account he is to make the debit entry regarding the development rebate but the question is up to what point of time it can be done ? If a reference is made to section 22(3) of the Income-tax Act, the assessee has a right to modify his return right up to the date befor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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