TMI Blog1994 (3) TMI 86X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee is a company which had established a new industrial undertaking and claimed relief under section 801 of the Income-tax Act, 1961. For the assessment year 1975-76, the previous year was the period October 27, 1973, to November 13, 1974. On October 27, 1973, the opening capital was Rs. 4,88,117 and there was a borrowed capital of Rs. 10,36,279 and the closing balance on that day wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tation of relief under section 80J for the assessment year 1975-76 and whether the relief as computed in the original assessment is correct under the law in the facts and circumstances of the assessee's case? " In the meanwhile, section 80J has undergone statutory changes incorporating rule 19A and the matter went up to the Supreme Court. In Lohia Machines Ltd. v. Union of India [1985] 152 ITR 3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other transactions and should refer to the closing balance on the first day. Learned counsel for the Revenue points out that the rejection of the argument that the other capital employed during the entire computation period should also be taken into account, includes also the transactions of the first day because immediately after the opening balance, even the transactions of the first day must be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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