1985 (10) TMI 28

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....e under section 256 (1) of the Income-tax Act, 1961, three questions are posed to us. They read thus : "(1) Whether sub-rule (3) of rule 19A of the Income-tax Rules, 1962, is directly in conflict with the parent provision in section 80J of the Income-tax Act, 1961 ? (2) If so, whether section 80J of the Income-tax Act, 1961, prevails over sub-rule (3) of rule 19A of the Income-tax Rules, 196....

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.... of the case. The overall impression that we gather upon a reading of paragraph 14 of the Tribunal's order is that the assessee had borrowed moneys and had employed the same in its new industrial undertaking. There is no finding of fact by the Tribunal to that effect. In fact, the Tribunal has in paragraph 13 stated that there was, according to the assessee, no borrowing or debt on account of t....

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....fund for the new undertaking instead of using its borrowed capital" and "there is no apparent reason or material to hold that it did not do so." We are unable to find in the Tribunal's order an affirmative finding of fact that the assessee did use its own fund for the new undertaking instead of its borrowed capital. The Tribunal says that "it was for the assessee to have made a mental note of its ....