9911796707
Case Laws
Acts
Notifications
Circulars
Classification
Forms
Manuals
Articles
News
D. Forum
Highlights
Notes
🚨 Important Update for Our Users
We are transitioning to our new and improved portal - www.taxtmi.com - for a better experience.
Follow us:
|
Home
Issues:
1. Whether the assessee is entitled to include the cost of a generator in the capital employed for the industrial undertaking for the purpose of relief under section 80J of the Income Tax Act, 1961. Detailed Analysis: The appeal before the Appellate Tribunal ITAT Chandigarh involved the question of whether the assessee could include the cost of a generator in the capital employed for the industrial undertaking to claim relief under section 80J of the Income Tax Act, 1961 for the assessment year 1974-75. The assessee, a limited company, had purchased the generator but later returned it to the vendor. The Income Tax Officer (ITO) initially allowed the relief under section 80J but later withdrew it during reassessment, citing that the asset had not been used in the undertaking. The Commissioner (Appeals) disagreed with the ITO's decision and directed the inclusion of the generator's cost for computing the relief under section 80J, relying on legal precedents. The Revenue challenged this decision in the appeal before the Tribunal. The Tribunal considered the arguments presented by both parties and examined the legal precedents cited by the assessee's counsel, which emphasized that the capital employed in an industrial undertaking includes the amount paid to acquire an asset, irrespective of its use. The Tribunal noted that if the asset was owned and paid for by the assessee at the beginning of the accounting period, the consideration paid for the asset should be considered while computing the capital employed. The Tribunal found no justification for the ITO's withdrawal of the relief solely based on non-usage of the asset. Therefore, the Tribunal upheld the decision of the Commissioner (Appeals) and confirmed the allowance of the relief under section 80J to the assessee. In conclusion, the Tribunal dismissed the appeal by the Revenue, affirming the Commissioner (Appeals)'s order to include the cost of the generator in the capital employed for the industrial undertaking for the purpose of relief under section 80J of the Income Tax Act, 1961 for the assessment year 1974-75.
|
