Reconstruction of existing business under section 80J did not defeat the cold storage deduction claim where prior precedent controlled.

A cold storage unit was examined to determine whether it amounted to reconstruction of an existing business so as to disqualify the assessee from deduction under section 80J of the Income-tax Act, 1961. The Tribunal had allowed the claim by following its earlier decision for the prior assessment year, and that earlier view had already been upheld by the Court. As no distinguishing feature was shown, the Court treated itself as bound by its earlier ruling on the same factual and legal issue and answered the reference in favour of the assessee and against the Revenue.

---

---

Issues: Whether the assessee's cold storage unit amounted to reconstruction of a business already in existence so as to disentitle it to deduction under section 80J of the Income-tax Act, 1961.

Analysis: The question referred arose for assessment year 1973-74. The Tribunal had allowed the claim under section 80J by following its earlier decision for the preceding assessment year, and that earlier view had already been upheld by the Court. No distinguishing feature was shown to justify a different result. The Court held itself bound by its earlier decision on the same factual and legal issue.

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

---