2000 (7) TMI 52

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tax Appellate Tribunal, Delhi, Bench "B" (for short "the Tribunal"), under s. 256(1) of the IT Act, 1961 (in short the "Act"), for opinion of this Court : "Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in holding that under s. 80J(3), the assessee was authorised to claim deduction under s. 80J at any time within a period of seven years from the initi....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ad set up an industrial undertaking to commence production in the previous year ending on 30th June, 1965, and, as such, it was entitled to deduction under s. 80J for the asst. yr. 1966-67 and four succeeding assessment years. It was the assessee's stand that claim for deduction could be made for six years from the start of the previous year relevant to the assessment year commencing on 1st April,....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he assessee when the matter was called. The question came up for consideration of the Karnataka High Court in CIT vs. Sree Valliappa Textiles Ltd. (1986) 57 CTR (Kar) 65 : (1987) 166 ITR 548 (Kar) : TC 25R. 1168. The following observation was made by the said High Court : "We are in respectful agreement with the view taken in all these cases that the right of an assessee to carry forward and set ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ether that loss may be carried forward and set off against the income of the subsequent year. As rightly pointed out by Sri Srinivasan, s. 80J(1) and (3) have to be read together and not in isolation. We have first to ascertain the scope and ambit of s. 80J(1) and it is only thereafter to consider the scope and ambit of s. 80J(3). It, therefore, follows that there has to be computation of loss und....