TMI Blog1984 (11) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 256(1) of the Income-tax Act, 1961, for the assessment year 1970-71, the following question of law has been referred by the Tribunal : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that in view of section 80A(2) of the Income-tax Act, 1961, the assessee was not entitled to any relief under section 80-I ? " The assessee claimed reli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come. The Tribunal held that in the year under consideration, the gross total income is nil and in view of section 80A(2), the assessee is not entitled to any relief under section 80-I. Section 80A lays down certain general principles which are relevant for the purpose of deductions to be allowed in computing the total income under sections 80C to 80VV. Such deductions are to be allowed from the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stion of any further deduction under section 80M of the Act. In the instant case also, the Tribunal found that the gross total income of the assessee is nil and, as such, the assessee is not entitled to any relief under section 80-1 of the Act. As regards the development rebate, the Finance (No. 2) Act, 1967 amended section 33(2) of the Income-tax Act, 1961, with effect from April 1, 1968. Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed by way of development rebate for that assessment year under sub-section (1) or sub-section (1A) shall be only such amount as is sufficient to reduce the said total income to nil; and ........ The underlined portion was inserted by the Finance (No. 2) Act of 1967. The effect of this amendment is that from the assessment year 1968-69, the deduction on account of development rebate is limi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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