( 1 ) THIS reference under Section 256, Sub-clause (1), of the I. T. Act, is being disposed of by this order. It was initiated by the Commissioner of income-tax and arose out of the Tribunals order in Income-tax Appeals Nos. 1502 and 1503 (Allahabad) of 1972-73. The following two questions have been referred to this court : " (1) Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that the assessees claim for development rebate in respect of assets installed up to september 30, 1968, was rightly considered by the Appellate Assistant Commissioner in the assessment year 1970-71, even though this claim had been rejected by the Income-tax Officer in the assessment order for 1969-70 and the grounds raised by the assessee had been treated as irrelevant by the Appellate Assistant Commissioner while disposing of the appeal for that year? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was correct in upholding the Appellate Assistant Commissioners order allowing the assessees claim of development rebate of Rs. 5,52,247 in the assessment years 1970-71 and 1971-72?"

( 2 ) THE facts as gathered from the st