9911796707
TMI Blog1987 (7) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... owing question of law to this court for adjudication : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that relief under section 80J of the Income-tax Act, 1961, is allowable to the assessee on borrowed capital ? " The assessee, M/s. Lodha Enterprises, jodhpur, is a duly registered partnership firm dealing in the business of manufacture a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... view taken by the Income-tax Commissioner (Appeals) was upheld. The Commissioner of Income-tax thereafter moved an application to the Tribunal to make the reference. The Tribunal thereafter has made this reference. We have heard Mr. B. R. Arora, for the Revenue, and Mr. Rajesh Balia, for the assessee. It was argued by Mr. Arora, learned counsel for the Revenue, that the view taken by the Calcutt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IT v. Anand Bahri Steel and Wire Products [1982] 133 ITR 365 and CIT v. K. N. Oil Industries [1982] 134 ITR 651 was approved by their Lordships of the. Supreme Court in the case of Lohia Machines Ltd. [1985] 152 ITR 308. It would be useful to reproduce the following passage of the judgment rendered in the case of Lohia Machines Ltd. (headnote) : " (i) In so far as it provided for the exclusion of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as sub-section (1A) in section 80J, with retrospective effect from April 1, 1972, was merely clarificatory in nature and was, accordingly, valid." The Income-tax Appellate Tribunal was thus not justified and correct in holding that deduction under section 80J of the Income-tax Act, 1961, is allowable to the assessee on the entire amount claimed to be the " capital invested " by the assessee in it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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