USHA BELTRON LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) AT the instance of the assessee, the Tribunal has referred the following questions to this court for opinion under Section 256(2) of the Income-tax Act, 1961 :

(2.) WHETHER, on the facts and in the circumstances of the case, the Tribunal was right in applying the ratio of the decision of the Supreme Court in the case of CIT v. Arvind Mills Ltd. [1992] 193 ITR 255, rendered in connection with the allowance of development rebate to the company's claim for allowing investment allowance ?"

(3.) IN Arvind Mills' case [1992] 193 ITR 255 the Supreme Court noted that the devaluation of the INdian rupee on June 6, 1966, had brought about several problems. One such problem arose out of the consequential enhancement in the liability of an INdian businessman who had imported plant and machinery from aboard, the consideration for which had been fixed in terms of a foreign currency and which had not been fully discharged by the date of devaluation. It was in order to obviate the difficulties that Section 43A was inserted in the INcome-tax Act by Act 20 of 1967 with effect from April 1, 1967.