9911796707
Advanced Search 
TMI Blog1996 (3) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... ester fibre plant at Baroda in the accounting year of 1974-75, relevant to the assessment year 1975-76. In the subsequent accounting year 1975-76, the appellant also installed a new Sulzer plant at Ahmedabad. Both the aforesaid plants fulfilled all the conditions for the grant of necessary relief under section 80J of the Act. Accordingly, in the course of assessment of the company for the assessment years commencing from the assessment year 1975-76, the relief to which the appellant was entitled under section 80J of the Act, was worked out and, to the extent that the profit in respect of the said plant was not sufficient to absorb the said relief, the amounts of the said relief were carried forward to the subsequent years as provided by se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er fibre plant and the Sulzer plant for the accounting year relevant to the assessment years 1977-78 and 1978-79. The appellant-company replied that the total income of the company for the assessment year 1978-79 was nil and there were carried forward losses, depreciation, etc., in respect of the preceding years. It also stated that the profits of the polyester fibre plant for the assessment year 1978-79 were Rs. 4,66,73,159. In respect of the Sulzer plant, it was pointed out that there was no profit. The respondent worked out the relief allowable to the appellant in respect of the said plants at six per cent. of the capital employed at Rs. 77,42,921 in respect of the polyester fibre plant and Rs. 18,07,968 in respect of the Sulzer plant. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 80K could not be granted in respect of the relevant amount of capital employed in that plant during that particular previous year. In arriving at the aforesaid conclusion, the High Court observed that the decision of this court in the case of Union of India v. Coromandel Fertilizers Ltd. [1976] 102 ITR 533 did support the contention of the appellant to the effect that the benefit under section 80K would be available but the High Court doubted the correctness of this judgment in view of the decisions of this court in the cases of Rajapalayam Mills Ltd. v. CIT [1978] 115 ITR 777 and CIT v. Patiala Flour Mills Co. P. Ltd. [1978] 115 ITR 640. The decision of this court in Coromandel Fertilizers' case [1976] 102 ITR 533 related to the i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... when computed under the provisions of the Income-tax Act are nil or show a loss. In our opinion, there is no justification for the High Court not to have followed the decision of this court in Coromandel Fertilizers' case [1976] 102 ITR 533. It is not in dispute that there was an entitlement to the appellant in the present case under section 80J and this being so the decision in Coromandel Fertilizers' case [1976] 102 ITR 533 (SC) was clearly applicable. Patiala Flour Mills' case [1970] 115 ITR 640 (SC) was concerned with section 80J of the Act and Rajapalayam Mills' case [1978] 115 ITR 777 (SC) was essentially concerned with section 15C of the Act of 1922, and section 84 of the Act of 1961. In neither of these two cases was any reference ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
