COMMISSIONER OF INCOME TAX Vs. SHRISHAKTI TRADING CO

JUDGEMENT

(1.) BY this reference, pursuant to the order of this Court under S. 256(2) of the Act, the Tribunal has referred the following two questions of law for opinion :

(2.) THE first question arises on account of withdrawal of the development rebate granted to the assessee by taking resort to the provisions of S. 155(5)(i) of the Act. The controversy in the second question pertains to disallowance of development rebate to the assessee at the very outset. The reason for disallowance in the asst. year 1963 64, of course, is the same which resulted in withdrawal of the development rebate already allowed in the asst. yrs. 1961 62 and 1962 63 viz. non compliance of the requirements of Sub S. (4) of S. 33 of the Act on the ground that the transfer of the business by the assessee to the limited company did not fall within the ambit of sub s. (4).

(3.) THE contention of the Revenue is that in the instant case, the transfer affected by the assessee does not fall either under Sub S. (3) or Sub S. (4) of S. 33 of the Act. According to the assessee, s. 155(1) has no application as the transfer is as a result of succession of the business of the assessee firm by a company.