TMI Blog1991 (2) TMI 356X X X X Extracts X X X X X X X X Extracts X X X X ..... 5 to 1970-71. The assessee, it is common ground, has been purchasing new machinery year after year on which he claimed and was allowed development rebate as under : Assessment year Amount allowed Rs. 1964-65 23,717 1965-66 41,683 1966-67 5,770 1967-68 28,066 1968-69 49,488 1969-70 2,265 1970-71 2,835 By a deed of partnership dated January 1, 1970, he converted his busi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 256(1) of the Income-tax Act, 1961 : "(1) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in upholding the withdrawal under section 155(5) of the Income-tax Act, 1961, of the development rebate earlier allowed in respect of the plant and machinery employed in the proprietary concern of the assessee but which the assessee brought into the partnersh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ording to her, this judgment is not applicable in this case as the said judgment was delivered in the context of "transfer" of a capital asset for the purpose of capital gains and not for the purpose of section 34(3)(b). She submitted that the Madras High Court's decision in the case of CIT v. Vijaya Productions Pvt. Ltd. (No. 1) [1985] 152 ITR 613, was squarely applicable in this case and, theref ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e word "transfer" as used in section 34(3)(b). Moreover, we find that a Full Bench of the Kerala High Court in the case of A. Abdul Rahim, Travancore Confectionery Works v. CIT [1977] 110 ITR 595, and the Karnataka High Court in the case of Addl. CIT v. M. A. J. Vasanaik [1979] 116 ITR 110, considered the purport and scope of the word "transfer" in the context of section 34 (3) (b) and held that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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