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Section 34 of the Income-tax Act, 1961 - Development rebate - Conditions for - Whether there is no time limit under Act for claiming development rebate - Held, yes FACTS The assessee-firm was denied development rebate on the ground that it was barred by time limit. However, on appeal, the Tribunal held that the requirement of section 34(3)(a) regarding creating of development rebate reserve had been satisfied. On reference : HELD The High Court of Punjab and Haryana in CIT v. Sardar Singh Sachdeva [1972] 86 ITR 387 had taken the view that the Act does not contemplate a limit of time for claiming development rebate. Following the aforesaid decision, it was to be held that the Tribunal was right in holding that the requirement of section 34(3)(a) regarding creating of development rebate reserve had been satisfied. Note : The case has been decided in favour of the assessee. CASES REFERRED TO CIT v. Modi Spinning. and Weaving. Mills Co. Ltd. [1973] 89 ITR 304 (All.), CIT v. Narula Cold Storage & Ice Factory [1976] 104 ITR 148 (Orissa), Tata Iron & Steel Co. Ltd. v. N.C. Upadhyaya [1974] 96 ITR 1 (Bom.), Veerabhadra Iron Foundry v. CIT [1968] 69 ITR 425 (AP), CIT v. Sardar Singh Sachdeva[1972] 86 ITR 387 (Punj.) and Keshavlal Vithaldas v. CIT [1976] 105 ITR 601 (Guj.). JUDGMENT The question referred to the High Court under section 256(1) of the Income-tax Act, 1961, was as follows: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was…

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