Section 80J claim could not be reopened later when the Revenue failed to challenge the earlier appellate direction directly.

The assessee's claim under section 80J for assessment year 1972-73 was treated as properly carried forward and allowed in assessment year 1975-76 because the earlier appellate direction remained operative. The Tribunal held that if the Revenue wished to contest that direction, it had to challenge the earlier appellate order directly; it could not reopen the same issue in an appeal against the later order merely because the direction was repeated there. The rectification order and accompanying chart also showed no deficiency for 1972-73. The issue was answered in favour of the assessee and against the Revenue.

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Issues: Whether the assessee's claim under section 80J for assessment year 1972-73 was rightly directed to be determined in assessment year 1975-76 and allowed in that year, and whether the Revenue could challenge the earlier appellate direction in an appeal against the later order.

Analysis: The Tribunal had held that if the Revenue was aggrieved by the direction contained in the earlier appellate order, it ought to have challenged that order directly, and that the same direction could not be reopened in an appeal against the later order merely because it was reiterated there. The record also showed a rectification order and a chart that did not reflect any deficiency for 1972-73. In these circumstances, the earlier direction was treated as operative and the Revenue's challenge was considered too late.

Conclusion: The question was answered in the affirmative, in favour of the assessee and against the Revenue.

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