Deb, J. - (1.) This is a reference under Section 256(1) of the I.T. Act, 1961. The assessment year is 1971-72. The relevant accounting year ended on 30th of June, 1970.
(2.) The ITO allowed the development rebate under Clause (B)(i) of Section 33(1)(b) of the I.T. Act, 1961, on plant and machinery which were installed and used by the assessee in the accounting year relevant to the assessment year under reference.
(3.) The Addl. Commissioner was of opinion that the development rebate was erroneously allowed and it was also prejudicial to the interests of the revenue. He, therefore, gave an opportunity to the assessee of being heard.;