2005 (7) TMI 79

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....ion has been referred by the Income-tax Appellate Tribunal, Ahmedabad Bench "C", under section 256(2) of the Income-tax Act, 1961 ("the Act"). "Whether, on the facts and in the circumstances of the case, the question regarding computation of capital employed for granting relief under section 80J of the Income-tax Act, 1961 was rightly decided by the Income-tax Appellate Tribunal?" The assess....

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.... therefore, worked out the said figure at a sum of Rs. 59,85,542 and deducted the same from the aggregate of the assets worked out by the assessee. Thus the figure of total capital employed in the new unit was reduced to Rs. 49,09,577 and accordingly relief under section 80J at 7.5 per cent. was worked out at Rs. 3,68,218. Being aggrieved with the aforesaid order, the assessee carried the matte....

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....unal upheld the finding recorded by the Commissioner of Income-tax (Appeals) and dismissed the Revenue's appeal. Mr. Tanvish U. Bhatt, learned standing counsel appearing on behalf of the applicant Revenue, very fairly submitted that in the light of the circular issued by the Central Board of Direct Taxes the Revenue was not in a position to assail the order of the Tribunal. Section 80J of th....

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....s not necessary to refer to clause (IV). The controversy as to what would constitute the aggregate of borrowed moneys and debts owed is no longer required to be gone into in the light of the aforesaid circular issued by the Central Board of Direct Taxes. In the case of Indian Oil Corporation Ltd. [1973] 92 ITR 241, the Bombay High Court has held that for the purpose of arriving at capital emplo....