TMI Blog1997 (12) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessment year 1977-78 which is in dispute, the assessee claimed a relief of Rs. 34,820 under section 80J of the Act by filing a revised return. In the initial return which was filed for that year, no such claim was made. The assessee-firm had started its business in the previous year relevant to the assessment year 1974-75, but failed to claim deduction under section 80J. Even during the two subsequent assessment years, i.e., 1975-76 and 1976-77, no such claim was made. The Income-tax Officer was of the view that the assessee's claim ought to have been allowed in the assessment year relevant to the previous year in which the industrial undertaking begins to manufacture or produce articles. Since the assessee had failed to make such a cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the industrial undertaking or ship or business of the hotel, as the case may be, computed in the prescribed manner in respect of the previous year relevant to the assessment year (the amount calculated as aforesaid being hereafter, in this section, referred to as the relevant amount of capital employed during the previous year): Provided..... (2) The deduction specified in sub-section (1) shall be allowed in computing the total income in respect of the assessment year relevant to the previous year in which the industrial undertaking begins to manufacture or produce articles or to operate its cold storage plant or plants or the ship is first brought into use or the business of the hotel starts functioning (such assessment year being her ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that section 80J provides for an incentive in the form of a "tax holiday" to a newly established industrial undertaking by granting certain partial benefit, so far as the profits of a new industrial undertaking are concerned for a limited period. The deduction contemplated is "per annum" for full five years. The assessee is entitled to get the relief for each of the five years, during which the relief under this section is available. The profits and gains derived from business are assessable in each assessment year. The assessee can legitimately make a claim for relief under section 80J within the period of exemption of five years by showing that it fulfils all the requirements for the grant of relief contemplated under section 80J of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of section 80J. The object of section 80J is to provide a fillip to a new industrial undertaking in its initial stages, the exemption is thus limited only for a number of years. This benefit cannot be taken away by importing any restrictions which do not find mention in the relevant provision itself. It is a recognised principle of interpretation that the administrative authority or the court should not whittle down the plenitude of the exemption or relief granted by the legislation by laying stress on any ambiguity here or there, although in the instant case no ambiguity was brought to our notice. It is not the case of the Revenue that in the assessment year in dispute the assessee did not fulfil all the conditions of section 80J. At the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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