Appeal by certificate from the judgment and decree dated December 5, 1963 of the Allahabad High Court in Special Appeal No.
Provided Any sum to be appropriated towards the Development Reserve in respect of any accounting year under subparagraph 1 , may be appropriated in annual instalments spread over a period number exceeding five years from the companymencement of that accounting year.
In 1957 the Sixth Schedule of the Electricity Supply Act, 1948 was amended introducing a new clause VA which reads There shall be created a reserve to be called the Development Reserve to which shall be appropriated in respect of each accounting year a sum equal to the amount of income tax and super tax calculated at rates applicable during the assessment year for which the accounting year of the licensee is the previous year, on the amount, of development rebate to which the licensee is entitled for the accounting year under clause vi b of sub section 2 of section 10 of the Indian Income tax Act, 1922.
CIVIL APPELLATE JURISDICTION Civil Appeal No.
1201 of 1967.
7,82,256/ as mutually agreed.
Sen, A. Banerjee and B. Dutta, for the respondent.
N. Kacker, and O. P. Rana, for the appellant.
Thereafter disputes arose about certain reserves of the companypany and in the present appeal we are companycerned only with what is called the Development Reserve.
It was by the Finance Act of 1955 that a provision was made in the Income Tax Act for development rebate.
727 of 1962.
The appellant is the U.P. State Electricity Board and the respondent is the Official Liquidator of the Lower Ganges Jamuna Electricity Distributing Co. Ltd. This companypany went into liquidation in 1937 and had been administered by the Official Liquidator till it was purchased by the appellant Board on, 1 6 1961 for a sum of Rs.
The Judgment of the Court was delivered by ALAGIRISWAMI, J. This is an appeal against judgement of a Division Bench of the Allahabad High Court affirming on appeal the judgment of a learned Single Judge dealing with companypany matters.
On the purchase of the undertaking, the Develop.merit Reserve shall be handed over to the purchaser and maintained as such Development Reserve Provided that where the undertaking is purchased by the Board or the State Government, the amount of the Reserve may be deducted from the price payable to the licensee.
The Development Reserve shall be available only for investment in the business of electricity supply of the undertaking.
This companytention having been overruled by the Courts below this appeal has been filed.
