2002 (7) TMI 63

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....J.-The questions came to be referred at the instance of the assessee, they being: "1. Whether the Tribunal was right in holding that in computing the relief under section 80J of the Income-tax Act, 1961, for purpose of arriving at the capital employed in various units, the liabilities of head office mainly sales tax loan and fixed deposits should be deducted? 2. Whether the Tribunal was righ....

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....nt year is 1982-83. It is found that there are new units of this company established by the company. During the assessment proceedings, the assessee claimed deduction under section 80J of the Act amounting to Rs. 12,29,040. This was in respect of its five units. The Inspecting Assistant Commissioner held that the entitlement for deductions under section 80J was only to the tune of Rs. 5,59,637 and....

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....al has also upheld that order necessitating the present reference. Learned counsel for the assessee made a very novel argument. He contends that it would not be for the assessee to prove that the particular loan amounts or borrowings have not come to the units and it would be required to be established by the concerned authorities that in fact, the borrowings and the loan monies travelled from ....

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....travelled from the head office to the units and, therefore, it was not established that these two afore mentioned amounts did actually travel from the head office to the units. We are afraid that it would be for the assessee to establish the fact clearly once the Department finds that the head office has actually raised the borrowings, firstly by the interest-free sales tax loan and, secondly, on ....