COMMISSIONER OF INCOME TAX Vs. HINDUSTHAN MOTORS LTD

JUDGEMENT

(1.) This reference arises out of the income-tax assessment of Hindusthan Motors Ltd., the assessee, in the assessment year 1971-72. On an application of the Revenue under Section 256(1) of the Income-tax Act, 1961, the following questions have been referred by the Tribunal as questions of law arising out of its order for the opinion of this court:

(2.) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the assessee's claim to development rebate in respect of the tube-well was justified and in that view granting development rebate on tube-well brought into existence during the assessment year 1971-72 for Rs. 1,18,205 ?"

(3.) The Income-tax Officer in making the assessment for the assessment year involved did not allow development rebate to the assessee on tube-wells which were constructed during the year at a cost of Rs. 1,18,205. On an appeal by the assessee, the Appellate Assistant Commissioner, following an appellate order dated April 11, 1975, for the assessment year 1972-73 in the case of the same assessee, directed the Income-tax Officer to allow the development rebate for tube-wells as claimed by the assessee.