Relief to new industrial undertakings-Computation of the capital employed in the undertakings-Section 80J(1A) of the Income-tax Act, 1961

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..... t, 1961, provides that in computing the taxable income of an assessee from a newly established industrial undertaking, ship or business of hotel, a deduction shall be allowed at the rate of 6 per cent. (with effect from 1-4-1976 at the rate of 7.5 per cent. in the case of a company) of the capital employed in the industrial undertaking, ship or business of the hotel. Rule 19A of the Income-tax Rul .....

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..... considered this judgment and accepted the interpretation given by the High Court for harmonious working of rule 19A. 2. Section 80J(1A) was inserted by the Finance Act, 1980, adopting the provisions made in rule 19A. The language of section 80J(1A) is the same as in rule 19A. Hence, the Board is of the view that the judgment of the Bombay High Court is equally applicable to the provisions made i .....

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