| Case ID |
d3c14838-a0b6-4b33-ab1d-1125fe1de554 |
| Body |
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| Case Number |
IT REFERENCE NO. 243 OF 1976 |
| Decision Date |
Dec 12, 1988 |
| Hearing Date |
|
| Decision |
The Tribunal held that the assessee was entitled to development rebate on its plant and machinery installed during the earlier years when no development rebate reserve was created in the year of installation of the plant and machinery due to lack of profits in those years. The court affirmed the Tribunal's order, referencing the precedent set in Indian Oil Corporation Ltd. v. S. Rajagopalan, ITO [1973] 92 ITR 241 (Bom.). Consequently, the decision was ruled in favor of the assessee, establishing the right to claim the development rebate despite the absence of a reserve in the installation year. The ruling underscores the importance of prior case law in determining tax rebate entitlements, reinforcing the principle that existing legal precedents guide tax assessments. |
| Summary |
This case revolves around the interpretation of Section 33 of the Income-tax Act, 1961, concerning the entitlement of an assessee to a development rebate for plant and machinery installed in previous financial years. The Bombay High Court, through the judgment delivered by Justices S.P. Bharucha and T.D. Sugla, examined whether the lack of profits in the years of installation negated the possibility of claiming a development rebate. The court concluded that the assessee was indeed entitled to the rebate, referencing a pivotal decision in the case of Indian Oil Corporation Ltd. v. S. Rajagopalan, ITO [1973] 92 ITR 241 (Bom.). This definitive ruling emphasizes the reliance on established legal precedents in tax law, particularly regarding the development rebate's applicability. The decision is significant for taxpayers and legal practitioners alike, as it clarifies the conditions under which rebates can be claimed, offering guidance for future assessments and reinforcing the importance of maintaining accurate financial records. The ruling is particularly relevant in discussions surrounding tax law, tax rebates, and the implications of prior case law on current assessments. |
| Court |
Bombay High Court
|
| Entities Involved |
Indian Oil Corporation Ltd.
|
| Judges |
S.P. Bharucha,
T.D. Sugla
|
| Lawyers |
V.R. Bhatia,
S.V. Naik,
A.P. Sathe
|
| Petitioners |
|
| Respondents |
|
| Citations |
1990 SLD 433 = (1990) 184 ITR 572
|
| Other Citations |
Indian Oil Corpn. Ltd. v. S. Rajagopalan, ITO [1973] 92 ITR 241 (Bom.)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
33
|