1981 (1) TMI 39

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.... reference under s. 256(1) of the I.T. Act, 1961 (hereinafter referred to as the Act "), the Income-tax Appellate Tribunal, Indore Bench, has referred the following question of law to this court for its opinion: " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law, in holding that for the purpose of allowing deduction u/s. 80J, the rate of 6% per annum....

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....y the ITO, the assessee preferred an appeal before the AAC; but the appeal was dismissed. The assessee, therefore, filed second appeal before the Tribunal. On behalf of the assessee, it was submitted before the Tribunal that the assessee was entitled to the deduction under s. 80J of the Act for the full 12 months and not for a period of one month only. This contention was upheld by the Tribunal. A....

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....r in respect of the previous year relevant to the assessment year. Section 80J of the Act nowhere further provides for reduction of the amount of deduction on time basis, with reference to the working of the industrial undertaking.. The provisions of s. 80J of the Act which are intended to encourage the setting up of a new industrial enterprise have to be construed liberally. Even if a new underta....