| Case ID |
3d3a49af-9ffb-4876-a4a1-31d7ea6d1290 |
| Body |
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| Case Number |
IT REFERENCE No. 26 OF 1973 |
| Decision Date |
May 07, 1975 |
| Hearing Date |
|
| Decision |
The Gauhati High Court upheld the decision of the Income-tax Officer (ITO) to withdraw the excess development rebate allowed to Steelsworth (P.) Ltd. The court found that the company had failed to create the necessary reserve of 75% of the development rebate claimed during the relevant assessment year. The court emphasized that benefits conferred by the statute must be claimed only if the stipulated conditions are fulfilled. The Tribunal's ruling that the development rebate of Rs. 12,319 was wrongly allowed was affirmed, leading to the conclusion that the ITO acted justifiably in rectifying the earlier assessment order. |
| Summary |
In the case of Steelsworth (P.) Ltd. v. Commissioner of Income Tax, the Gauhati High Court addressed the issue of the development rebate under the Income-tax Act, 1961. The case revolved around the failure of the petitioner to maintain the requisite reserve of 75% for the development rebate claimed. The court's analysis highlighted the importance of compliance with statutory requirements, asserting that benefits under the law cannot be availed without adherence to specific conditions. This case underscores the significance of proper accounting practices and regulatory compliance in tax matters. The decision serves as a critical reminder for companies to ensure that all statutory conditions are met before claiming tax benefits, thereby influencing future practices in financial reporting and tax planning. |
| Court |
Gauhati High Court
|
| Entities Involved |
Commissioner of Income Tax,
Steelsworth (P.) Ltd.
|
| Judges |
M.C. Pathak, C.J.,
Baharul Islam, J
|
| Lawyers |
J.C. Medhi,
R.L. Rara,
G.K. Talukdar
|
| Petitioners |
Steelsworth (P.) Ltd.
|
| Respondents |
Commissioner of Income Tax
|
| Citations |
1976 SLD 383,
(1976) 103 ITR 20
|
| Other Citations |
Not available
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
33,
34
|