1990 (12) TMI 27

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....ew industrial unit which is eligible for relief under section 80J ?" The assessee is a limited company. During the assessment years in question, the assessee-company had claimed deduction under section 80J but the same was rejected by the Income-tax Officer. The assessee preferred an appeal to the Commissioner of Income-tax. (Appeals) who allowed the same. Against this part of the appellate order, the Revenue went in appeal to the Tribunal which affirmed the order of the Commissioner of Income-tax (Appeals) on this count. It has been noticed by the Tribunal in paragraph 3 of its order that some of the basic facts were not disputed even by the Income-tax Officer. These facts are, (i) the assessee had made substantial investments in executi....

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....(ii) common books of account were maintained, and (iii) the assessee's power units are the same for both the old and the new unit. Notwithstanding these objections, it was conceded before the Tribunal by the Department that the assessee had furnished the details of production pertaining to both the old and the new unit in pursuance of the Commissioner of Income-tax (Appeals) order and the month-wise details of production for each of the two assessment years under appeal for both the old and the new units were available on the Income-tax Officer's file. In my view, the question, as referred is concluded by the decision of the Supreme Court in the case of Textile Machinery Corporation Ltd. v. CIT [1977] 107 ITR 195. In this case, the Supreme....

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....rmane for considering the claim under section 80J of the Act. This view of mine is fortified by the view taken by the Karnataka High Court in the case of International Instruments (P.) Ltd. v. CIT [1980] 123 ITR 11, 21, wherein it has been held that : "The fact that there was common management or the fact that separate accounts had not been maintained, would not also lead to the conclusion that they were not separate undertakings. Even if separate account is not maintained the investment in each of the units can be reasonably determined with the material which the assessee may make available to the Department. We are, therefore, of the view that the finding of the Tribunal that the assessee was not entitled to relief under section 84 and de....