1987 (5) TMI 99

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....unting period was from 1st Oct., 1976 to 30th Nov., 1977. The ITO has observed as follows: "5.1 It is seen from the balance sheet and the information filed by the assessee that capital employed works out to a negative figure. The assessee will not, therefore, be entitled to any relief under s. 80J." The ITO has taken the capital employed as on 1st Oct., 1976. It was the assessee's case that ....

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.... in the assessee's statement regarding profit and loss account before the ITO, it was this period which was taken into account. Therefore, according to him the capital employed as on 1st Oct., 1976 has to be taken into account. On the other hand, the learned counsel for the assessee submitted that the computation period here meant the previous year which was defined in s. 3. He drew our attention ....

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....vs. Rama Raju Surgical Cotton Mills (1967) 63 ITR 478 (SC) 2) Western India Vegetable Product Ltd. vs. CIT (1954) 26 ITR 151(Bom) 3) CIT vs. Sarabhai Sons Pvt. Ltd. (1973) 90 ITR 318 (Guj) 4) Bhodilal Mengharaj & Co. Pvt. Ltd. vs. CIT (1979) 13 CTR (Bom) 101 : (1979) 119 ITR 968 (Bom) 5) CWT vs. Andhra Valley Power Supply Co. Ltd. 1978 CTR (Bom) 578 : (1978) 114 ITR 783 (Bom). 3. We....