S. RAMACHANDRA IYER, C. J. :- This reference, made at the instance of the revenue, raises the following questions :

1. Whether the assessee is entitled to the allowance of development rebate under the provisions of S. 10(2)(vi-b) of the Income-tax Act in respect of a new bus and a new lorry installed after 31-12-1957, even though the necessary reserve, in accordance with S. 10(2)(vi-b), as it stood at the relevant time, had not been made?

2. Whether the direction given to the Income-tax Officer at this stage that the said allowance may be granted to the assessee, on production of the books before the Income-tax Officer, is justified ?

The facts giving rise to this reference are these. The assessee (a Hindu undivided family) had business in cement and fertilisers. The family had also a business in bus transport and lorry service. Besides, it owned two rice mills. For the assessment year 1959-60, the relevant accounting period being the previous financial year, the assessee submitted a return showing a loss of Rs. 20441 in respect of the business. That loss was ascertained, after deducting, inter alia, a development rebate at 25 per cent on a new lorry and a new bus which were