COMMISSIONER OF INCOME-TAX Vs. BECO ENGINEERING CO

JUDGEMENT

(1.) At the instance of the Commissioner of Income-tax, Haryana, Rohtak, the Income-tax Appellate Tribunal, Delhi Bench "E", New Delhi (hereinafter referred to as "the Tribunal"), after drawing up the statement of the case, has referred the following question of law to this court, being the jurisdictional High Court, for its opinion :

(2.) Shortly stated, the facts are :

(3.) The assessee filed a further appeal before the Tribunal, which was accepted. After noticing conflicting decisions in regard to the allowability of development rebate without creating the development rebate reserve, relying upon a decision of the Andhra Pradesh High Court in CIT v. Agro Insecticides and Allied Industries [1981] 127 ITR 796 and Circular No. 189 (see [1976] 102 ITR (St.) 90), dated January 30, 1976, it was held by the Tribunal that the assessee was not bound to create the statutory development reserve in the year in which it did not make the profits.