The assessing authority allowed the claim as made by the companypany.
The Company went up on appeal.
In regarded to the above assessment years, in the returns of Income filed by the appellant before the assessing authority, a claim towards allowance of development rebate under section 33 of the Income tax Act, 1961 hereinafter referred to as the Act was made.,
Subsequently, the assessing authority numbericed from the balance sheet of the appellant companypany that the companypany had made a transfer for sums from the development rebate reserve to share capitalisation account by issue of bonus shares.
Thereafter, on the application by the Commissioner of Income tax, the following questions of law were referred to the High Court Whether on the facts and in the circumstances of the case the ITAT is right in law in holding that issue of bonus shares from out of the development rebate reserve did number account to distribution of profits within the meaning of section 34 3 a i and section 155 5 ii a ?
with him for the Respondent J U D G M E N T The following Judgment of the Court was delivered SEN,J. The appellant is a public limited companypany.
The claim of the appellant for development rebate was sustained.
T.C.Sharma, N.K.Agarwal, B.K.Prasad, Advs.
The appellate authority allowed its appeal.
The assessment years involved are 1972 73, 1973 74 and 1974 75.
for the appellant Ramamurthy, Sr.
