SURAT TEXTILE MILLS LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS reference under S. 256(1) of the IT Act, 1961, made at the instance of the assessee, arises under the following circumstances :

(2.) AFTER receiving this letter from the ITO, the board of directors of the assessee company passed the following resolution on July 23, 1961 :

(3.) ON June 1, 1964, the ITO gave a show cause notice to the assessee under S. 154 of the IT Act, 1961, corresponding to S. 35 of the old Act, calling upon the company to show cause why the mistake in the assessment order regarding the allowance of the development rebate should not be rectified. After the explanation of the company was received, the following order was passed on August 13, 1964 :