1984 (8) TMI 8

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he following four questions have been referred to this court for its opinion under section 256(1) of the Income-tax Act, 1961 (" the Act ") : "1. Whether, on the facts and in the circumstances of the case, the liabilities of the particular unit only should be deducted in working out the capital employed in that unit for the purpose of calculating the relief under section 80J ? 2. Whether, on....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nd not to restrict proportionately to number of days for which the units have worked, in favour of the assessee. The fourth question is also covered by the decision in R.C. No. 75 of 1977, dated December 1, 1984, Vinnayallore Industries Ltd. v. CIT [1986] 162 ITR 881 (AP), against the assessee. Therefore, the question is answered against the assessee. The first question relates to the interp....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....s, we answer that the liabilities of a particular unit alone should be deducted for according relief under section 80J. The answer is in favour of the assessee. As to the third question, the land and the building in the instant case were purchased under an agreement of sale on March 13, 1971. The consideration for sale is Rs. 3,50,000. The facts show that possession of the land and building was....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....hinery. The Allahabad High Court in Addl. CIT v. U. P. State Agro Industrial Corporation [1981] 127 ITR 97, decided the question in respect of immovable property and permitted depreciation. The Delhi High Court, however, took a contrary view in CIT v. Hindustan Cold Storage and Refrigeration P. Ltd. [1976] 103 ITR 455. In this regard, it is not necessary to reiterate what was stated in the case of....