STEELSWORTH P LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is a reference under Section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), and the following question of law has been referred :

(2.) THE facts of the case, as appear from the statement of the case, are as follows :

(3.) ON further appeal before the Income-tax Appellate Tribunal the assessee contended that sufficient reserve was created for the assessment year 1968-69, which would more than compensate the deficiency of the assessment year 1966-67 and, therefore, the order withdrawing the development rebate was not tenable in law. The Tribunal, however, did not accept the said contention holding that as far as the assessment year was concerned adequate reserve was not created and since the required reserve was not created during the accounting year the claim of the assessee could not be upheld. Thus, the Tribunal dismissed the appeal. ON the above facts the above question of law has been referred.