TMI Blog1988 (11) TMI 66X X X X Extracts X X X X X X X X Extracts X X X X ..... 0J(1) ? (2) Whether the Additional Commissioner of Income-tax was competent to revise the assessment order for the assessment year 1970-71 in view of the fact that the question regarding the applicability of section 80J was determined in the assessment for the assessment year 1969-70 ? (3) If the answer to the above question is in the affirmative, in any event, whether the Additional Commissioner of Income-tax, while revising the assessment for the assessment year 1970-71 was competent to enhance that assessment by the amount of Rs. 45,442 which was the deduction granted in the assessment order for the assessment year 1969-70, the revisional proceedings against which had become time-barred ?" The assessee-company carries on a business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dered in the proceedings for the assessment year 1970-71 as the new unit was set up and the relief was claimed and allowed for the first time in the assessment year 1969-70. The assessee carried the matter in appeal to the Tribunal. The Tribunal confirmed the order of the Additional Commissioner of Income-tax. According to the Tribunal also, the new unit started for manufacture of copper powder amounted to reconstruction of business and was hit by the provisions of section 80J(4)(i) of the Act in view of the Calcutta High Court decision in [1971] 80 ITR 428. Distinguishing the case of CIT v. Indian Aluminium Co. Ltd. [1973] 88 ITR 257 (Cal), the Tribunal agreed with the Additional Commissioner that the assessee had not maintained separate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ustrial unit within the meaning of section 80J are (1) that the new unit was manufacturing copper powder which it was earlier importing from abroad and which powder it was using in its own factory for manufacture of its old products, and (2) no separate accounts were maintained in respect of this activity. As regards the first objection, we have already stated that the Supreme Court had reversed the Calcutta High Court's decision on the basis of which the new unit was not considered to be a new industrial undertaking within the meaning of section 80J(4) by the Additional Commissioner as well as the Tribunal. As regards the second objection that no separate accounts were maintained in respect of this activity, section 80J does not envisage a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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