9911796707
TMI Blog2002 (9) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... ich had a development rebate reserve transferred the amount in that reserve to the general reserve as the period for which the reserve was required to be maintained had come to an end. The Assessing Officer, as also the appellate authority did not accept the assessee's contention that while computing the capital base, under the Second Schedule to the Companies (Profits) Surtax Act, 1964, the amount of development rebate reserve which is transferred to the general reserve was not to be deducted. The Tribunal on further appeal, agreed with the assessee and allowed the assessee's appeal. Rule 1 and its clauses (i), (ii) and (iii) of the Second Schedule of the Companies (Profits) Surtax Act, 1964 (hereinafter referred to as "the Act"), read as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (i) for distribution by way of dividends or profits; or (ii) for remittance outside India as profits or for the creation of any asset outside India: Provided that this clause shall not apply where the assessee is a company, being a licensee within the meaning of the Electricity (Supply) Act, 1948 (54 of 1948), or where the ship has been acquired or the machinery or plant has been installed before the 1st day of January, 1958: Provided further that where a ship has been acquired after the 28th day of February, 1966, this clause shall have effect in respect of such ship as if for the words 'seventy-five' the word 'fifty' had been substituted. Explanation.--For the removal of doubts, it is hereby declared that the deduction referred to in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncluding therein the development rebate reserve, in addition to its other reserves. Having regard to these provisions, it is difficult to accept the submission made for the Revenue that the amount transferred to the general reserve from the development rebate reserve should be deducted from the general reserve while computing the capital base on the ground that the amount which formed part of the development rebate is an amount which has been allowed as a deduction in computing the income of the company for the purposes of the Income-tax Act, and the amount constituting the development rebate reserve which was required to be taken into account for a period of eight years while calculating the capital base is not to be regarded as not const ..... X X X X Extracts X X X X X X X X Extracts X X X X
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