COMMISSIONER OF INCOME TAX Vs. SAKALDIP ENGINEERING WORKS

JUDGEMENT

(1.) THIS is a reference under Section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"). The question referred to us for our opinion is :

(2.) THE assessment year is 1972-73.

(3.) FOR the reasons stated above, I am of the view that the Tribunal was correct in law in holding that the claim of unabsorbed development rebate and depreciation of the unregistered firm could be allowed as a deduction for the subsequent year of the registered firm under the provisions of Section 77 of the Income-tax Act. The question thus referred to us is answered in favour of the assessee and against the Revenue. Since no one has appeared on behalf of the assessee, the reference is deposed of in the terms mentioned above but without costs.