1978 (11) TMI 55

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....business consisted of manufacture of precision instruments and had been started in 1961. Under a deed dated the 2nd November, 1965, the business was taken over by the assessee with retrospective effect as from the 1st January, 1965. In its assessment to income-tax the assessee claimed benefit under s. 84 of the I.T. Act, 1961, as it stood at that time, on the ground that it was a newly established industrial undertaking. The ITO found that the assessee had been formed by reconstruction of a business already in existence and that the previous proprietor of the business and his nominees held substantial shares in the assessee-company. The other shareholders of the assessee were also the creditors of the previous business. He, therefore, he....

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....e to consider the question in future years de novo on the basis that there was no reconstruction of the business already in existence. On the application of the CIT, West Bengal-IV, Calcutta, under s. 256(1) of the I.T. Act, the Tribunal has drawn up a statement of case and has referred the following questions of law to this court for its opinion : " 1. Whether, on the facts and in the circumstances of the case and on a proper construction of section 84(2)(i) of the Income-tax Act, 1961, the Tribunal was right in holding that the industrial undertaking of the assessee was not formed by the reconstruction of a business already in existence? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in dire....