Work-in-progress forms part of capital for section 80J relief, and binding precedent barred a fresh reference.

Work-in-progress was treated as part of capital for computing relief under section 80J, following an earlier Bombay HC decision on the same question. Because that precedent remained binding unless overruled by the Supreme Court, the High Court declined to direct the Tribunal to state a case on the issue. The question was therefore answered in favour of the assessee and against the Department's request for reference.

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Issues: Whether work-in-progress was required to be treated as part of the capital for computing relief under section 80J.

Analysis: The assessment year in question was 1981-82. The issue was already concluded in favour of the assessee by an earlier decision of the same High Court holding that work-in-progress forms part of capital for the purpose of section 80J. Since that decision remained binding unless and until overruled by the Supreme Court, the Court found no reason to direct the Tribunal to state a case on the same question.

Conclusion: The question was answered in favour of the assessee and the Department's request for reference was declined.

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