1988 (7) TMI 38

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....ithin the meaning of section 154 of the Income-tax Act, 1961 ?" The facts are that the assessee-company which is engaged in the manufacture of steel rolling mills, started a new industry for the manufacture of hot rolled mill steel and high carbon wire rods in the previous year corresponding to the assessment year 1962-63. There was no profit from this new unit during that year. There were, however, profits in the assessment years under reference. The assessee, in the circumstances, made a claim under section 84 of the Act. The Income-tax Officer computed the amount of profits in the respective years on which, according to him, the relief was allowable, at Rs. 3,10,331 for the assessment year 1963-64, Rs. 3,97,761 for the assessment year....

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.... section 154 were applicable, no rectification was called for on the merits of the case and the value of the uninstalled plant and machinery had to be included in the capital employed by the new industrial undertaking. The Appellate Assistant Commissioner rejected both these contentions and confirmed the Income-tax Officer's orders on the above points. The assessee came in appeal to the Tribunal. Learned counsel for the assessee made before the Tribunal the same submissions which were made by him before the Appellate Assistant Commissioner. The Tribunal held that it was difficult to accept that the provisions of section 154 of the Act could be applied to the case of the assessee. According to the Tribunal, on an interpretation of the pro....