2004 (8) TMI 8

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....ion 256(1) of the Income-tax Act, 1961, hereinafter referred to as "the Act" for opinion to this court: "1. Whether, on the facts and in the circumstances of the case, the Tribunal was legally justified in setting aside the order of the Commissioner of Income-tax passed under section 263 of the Income-tax Act? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was co....

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....and after hearing the assessee-firm set aside the assessment and directed the Income-tax Officer to recompute the allowance under section 80J of the Act. The assessee preferred an appeal against the said order of the Commissioner of Income-tax, Lucknow. In disposing of this appeal, the Tribunal observed as follows: "... the amendments in the relevant provision of the section were made by the Fi....

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....nsel for the Revenue. Nobody has put in appearance on behalf of the respondent-assessee. Learned counsel for the Revenue submitted that as an amendment was made under section 80J of the Act by the Finance (No. 2) Act, 1980, which came into force from August 21, 1980, but was retrospective in operation, the order of the assessing authority ought to have excluded the borrowed capital for working ....