| Case ID |
031d3752-e274-48d0-924a-17eb2a228875 |
| Body |
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| Case Number |
1990 SLD 2060 |
| Decision Date |
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| Hearing Date |
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| Decision |
The court held that the development rebate on machinery installed during the year of account could be computed in the relevant assessment year and carried forward to the subsequent year, even if the necessary reserve was not created in the account year which was a year of loss. This decision was based on the precedent set in Indian Oil Corporation Ltd. v. S. Rajagopalan, ITO. The case was decided in favor of the assessee, affirming the right to claim the rebate despite the absence of a reserve in a loss year. |
| Summary |
In the case of Commissioner of Income tax v. Colour Shade P. Ltd., the Bombay High Court addressed the issue of whether a development rebate on machinery could be carried forward to a subsequent assessment year, despite the absence of a necessary reserve in a year of loss. The court referenced the Income-tax Act, specifically Section 33, which deals with development rebates. The ruling emphasized the importance of allowing tax benefits to be claimed even in adverse financial circumstances, reinforcing taxpayer rights. The decision aligns with prior case law, particularly Indian Oil Corporation Ltd. v. S. Rajagopalan, ITO, which established a precedent for similar claims. This case highlights significant aspects of tax law and the judicial interpretation of fiscal policy, making it a noteworthy reference for future cases involving tax rebates and assessments. Keywords such as 'development rebate', 'Income-tax Act', 'Bombay High Court', and 'taxpayer rights' are crucial for SEO optimization and could help in ranking discussions around tax-related legal matters. |
| Court |
Bombay High Court
|
| Entities Involved |
|
| Judges |
T.D. Sugla,
S.P. Bharucha
|
| Lawyers |
G.S. Jetley,
S.V. Naik,
V.V. Krishnamoorthy,
R.V. Talasikar
|
| Petitioners |
Commissioner of Income tax
|
| Respondents |
Colour Shade P. Ltd.
|
| Citations |
1990 SLD 2060,
(1990) 185 ITR 594
|
| Other Citations |
Indian Oil Corporation Ltd. v. S. Rajagopalan, ITO [1973] 92 ITR 241 (Bom.)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
33
|