TaxTMI 
TaxTMI 
1995 (3) TMI 11
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....see did not agitate the calculation of claim under section 80J done by the Income-tax Officer during the assessment year 1968-69 ?" The brief facts of the case are that the assessee is a manufacturer and is engaged in the production of cold drinks. the assessee claimed the deduction under section 80J of the Act at the rate of six per cent. The deductions were allowed for six months. A contention was also raised that the assessee is also entitled for six per cent. deduction of capital employed for the whole assessment year 1968-69, a part of the amount will be carried forward and set off against the income of the assessment year 1972-73 on computation and calculation for earlier years. The assessee requested the Income-tax Officer to comp....
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....on the part of the assessee to have claimed or for the Income-tax Officer to determine the deduction in accordance with the provisions of section 80J starting from 1968-69. Reliance has been placed on the decision of the Jammu and Kashmir High Court in the case of CIT v. Mattoo Worsted Spinning and Weaving Mills [1983] 139 ITR 1020, wherein the court came to the conclusion that the right to claim deduction under section 80J arose to the assessee only in the year when profits were made for the first time and not in the earlier assessment years when no such right to claim deduction had accrued to the assessee although the claim also related to the assessment year. In this case in the assessment year 1970-71 the profits were shown for the f....
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.... be allowed. The decision of the Bombay High Court in the case of CIT v. T. Maneklal Mfg. Co. Ltd. [1991] 192 ITR 268, has also been relied on to show that the assessee is entitled to avail of the benefit of carry forward and set off of section 80J deficiency in the year of profit even in the absence of computation thereof in the year of loss. In this case the view taken by the Karnataka High Court in CIT v. Sree Valliappa Textiles Ltd. [1987] 166 ITR 548 was dissented from and the view taken by the Andhra Pradesh High Court in CIT v. Veljan Hydrair (P.) Ltd. [1985] 151 ITR 734 was followed as also the decisions of the Madras High Court in CIT v. Bluemount Ceramics Ltd. [1980] 123 ITR 385, the Allahabad High Court in Addl. CIT v. Sheetalaya....
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....rder of the Income-tax Officer relating to the assessment year 1968-69. Nowhere has it been shown by the assessee that the calculation or finding of the Income-tax Officer were agitated in any manner. The observation of the Appellate Assistant Commissioner that no part of the deduction is available for set off against the income of the year under appeal was found correct. It was observed that the Income-tax Officer will allow deduction in the light of the order passed for the preceding years. It was further observed that it was not the job of the Income-tax Officer to correct the calculation or assessment pertaining to the assessment year 1968-69 and then to allow the deduction. On the basis of the finding which has been recorded by the aut....