Relief u/s 80-J. - Income Tax - 1577/CBDT

INSTRUCTION NO. 1577/CBDT Dated: December 9, 1984 The Board have by Instruction No. 933 dated 4-3-1976 stated that while computing the relief admissible under sec. 80-J of the Act, profits and gains attributable to the new industrial undertaking should be carefully computed by applying the provisions of section 30 to 43 of the Act as if the new industrial undertaking is a separate business by itself. In other words, in determining profits earned by a new industrial undertaking for the purposes of granting relief under section 80-J, no item of expense or other allowance including unabsorbed depreciation and development rebate relating to new industrial undertaking was to be allowed as a set off against gains and profits in other units or otherheads of income of the assessee even though for the purpose of determining the total income, such a set off has to be made under the law. Attention had been drawn to the judgement of the Madras High Court in the case of Rajapalayam Mills Ltd. Vs CIT (1978) 155 ITR 777. In view of the Supreme Court's judgement Instruction No. 933 stands withdrawn.