2004 (12) TMI 18

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....ribunal is justified in law in holding that deduction under sections 80J and 80HH is admissible to the assessee in respect of the capital employed in project No. 2?" 2. Whereas in Income-tax Reference No. 109 of 1986 the Income-tax Appellate Tribunal, Allahabad, has referred the following question of law under section 256(2) of the Act for opinion to this court: "Whether, on the facts and circumstances of the case, the Tribunal is justified in law in holding that the assessee was entitled to deduction under section 80HH of the Income-tax Act, 1961?" 3. The reference relates to the assessment year 1981-82. Since both the questions relate to the same assessee and involve the same controversy they have been heard together and ar....

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....) was also not satisfied. According to him it was a case where the new project was formed by the splitting up or the reconstruction of a business already in existence. He also found that several machinery and plant were common to both the projects or the moulding plants and, therefore, it was a case of splitting of the old undertaking. According to the Income-tax Officer the common use of the two projects of the land, building, splitting machine, galvanised plant, threading machine, store room, workshop, generating set and factory office proves that it was a case of splitting up of the old business. 6. The claim of deduction under section 80HH had been, however, negatived on the ground that as the claim under section 80J is not admissibl....