Section 80J deduction for a new industrial undertaking required fresh factual review before merits could be decided.

Deduction under section 80J for plant No. 3 depended on whether it qualified as a new industrial undertaking, but the relevant factual aspects had not been examined by the appellate authorities beyond the Income-tax Officer. As the issue required proper factual determination, the Court did not decide the merits and sent the matter back for fresh consideration by the Tribunal.

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Issues: Whether deduction under section 80J was allowable in respect of plant No. 3, and whether the factual question of the existence of a new industrial undertaking required fresh adjudication.

Analysis: The question turned on whether plant No. 3 constituted a new industrial undertaking, but the factual aspects had not been examined by the appellate authorities other than the Income-tax Officer. In these circumstances, the Court declined to answer the reference on merits and directed that the matter be considered afresh by the Tribunal.

Outcome: The reference was remitted to the Tribunal for fresh consideration on the merits.

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