2003 (1) TMI 50

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....tion 256(1) of the Income-tax Act, 1961. In the instant reference the following questions of law have been referred to us for our opinion: "1. Whether, on the facts and in the circumstances of the case and on proper interpretation of rule 19A(3) of the Income-tax Rules, 1962, the Tribunal was legally correct in holding that for the purposes of deduction under section 80J the amount of borrowed ....

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..... v. Union of India [1985] 152 ITR 308 it has been held by the Supreme Court that borrowed capital cannot be included. Following the said decision, question No. 1 referred is answered in the negative, i.e., in favour of the Department and against the assessee. Now coming to question No. 2 it appears that there is a typing mistake in the referring order as it mentions rule 19A of the Income-t....

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....the Income-tax Rules prescribed the mode of computation of capital employed in an industrial undertaking or a ship or the business of hotel for the purposes of the then section 84, which was operative up to the assessment year 1967-68. Section 84 of the Act was not operative for the relevant assessment years in question; hence rule 19 of the Income-tax Rules will have no application. In view of th....