TMI Blog1993 (6) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... as referred the following question to this court under section 256(1) of the Income-tax Act, 1961 : "Whether the assessee was entitled to development rebate of Rs. 15,103 in the assessment year 1972-73 ?" During the accounting period relevant to the assessment year 1971-72, the assessee purchased machinery for which Rs. 15,103 became payable as sales tax. But, during that year, the amount of s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Assistant Commissioner held that the appellant was entitled to the development rebate for the assessment year 1972-73 and, therefore, directed the Income-tax Officer to allow the development rebate in that assessment year after verifying that necessary conditions regarding creation of development rebate reserves, etc., were satisfied. The Department challenged the said order passed by the Appel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le or purchase was complete. Merely because the seller of the machinery and the assessee were in doubt as to whether the assessee would be entitled to the exemption under one or other of the exemption notifications issued by the Government, it cannot be said that the liability to pay sales tax had not arisen. Therefore, even though the amount of sales tax was paid in the subsequent year, it will h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vour of the Revenue. However, while disposing of this reference, it becomes necessary to observe that, if the assessee applies to the Commissioner under section 154, to be just and fair to the assessee, the Commissioner should entertain such an application and grant the development rebate by passing suitable order in that behalf, if granting of such development rebate is otherwise permissible in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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