1985 (9) TMI 40

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....ur should be deducted from the assets for both the assessment years for the purpose of arriving at the capital employed for determining the relief under section 80J of the Income-tax Act, 1961 ? 2. Whether, on the facts and in the circumstances of the case, the sums of Rs. 1,22,371 and Rs. 7,125, respectively, received for the two assessment years on the sale of import entitlement were the taxable income of the assessee ? " It is common ground that the first question must be answered in the affirmative and in favour of the Revenue, in view of the judgment of the Supreme Court in Lohia Machines Ltd. v. Union of India [1985] 152 ITR 308. It is also common ground that the second question must be answered in the affirmative and in favo....

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....ng ended on September 30,1967, and September 30, 1968. The assessee is a manufacturer of transmission towers used for the supply of electricity. It had a licence for such manufacture in excess of its actual capacity in its Bombay factory. On October 31, 1962, it applied to the Government of India to shift a part of its capacity to the State of Rajasthan. It was accorded sanction on October 22, 1963. It located the plant at Jaipur in Rajasthan in a new building and acquired new plant and machinery. The new unit started on June 1, 1967. The assessee claimed the benefit of section 80J of the Income-tax Act, 1961. The Income-tax Officer declined to give to the assessee the benefit of section 80J of the Income-tax Act, 1961, in respect of the....