COMMISSIONER OF INCOME TAX Vs. STANDARD CHEMICAL CO

JUDGEMENT

(1.) PURSUANT to a direction of this court, the Income-tax Appellate Tribunal drew up a statement of the case and referred the following question for the opinion of this court :

(2.) THE facts, as succinctly stated, are that the assessee purchased a cotton waste plant during the accounting period corresponding to the assessment year 1970-71. It claimed development rebate on it at the rate of 35 per cent. THE same was allowed by the Income-tax Officer, but subsequently by an order passed under Section 154 of the Income-tax Act, 1961 (briefly, "the Act"), dated February 26, 1975, he withdrew the development rebate originally granted at the rate of 35 per cent. and instead allowed development rebate at the rate of 20 per cent.

(3.) ITEM No. 32 of the Fifth Schedule in the Act is as follows :