TMI Blog1981 (1) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... stalled during the accounting year relevant to the assessment year 1970-71 ?" The assessee made a claim for relief under s. 80J of the Income-tax Act, 1961 (hereinafter referred to as " the Act "), in a sum of Rs. 21,30,606. In support of the claim, particulars were given about the extent of the ore raised and the new buildings put up and new machinery installed. The ITO, however, declined to grant relief being of the opinion that the existing framework had only been expanded to secure larger output. On appeal also, the claim of the assessee was not recognised. The AAC took the view that all that had been done was only to add a little more during the relevant year to the well-established business of the company which was being carried on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y building, which are adjacent to the same, cover about 41,000 sq. ft. A few of the existing thickeners and agitators have been continued and new ones added. The new buildings which were constructed during the accounting year relevant to the assessment years 1969-70 and 1970-71 cost in all Rs. 51,72,111. The new machinery installed during the same period were of the value of Rs. 1,00,63,822. These new buildings and machinery are used for the purpose of crushing gold ore and refining purposes. After having personally inspected these on the spot we are satisfied that these machineries are entirely new and can be taken as an independent unit by themselves." The Tribunal noticed several decided cases. It was of the opinion that the facts in C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of articles yielding additional profit attributable to the new outlay of capital in a separate and distinct unit is the heart of the matter, to earn benefit from the exemption of tax liability under section 15C. Sub-section (6) of the section also points to the same effect, namely, production of articles. The answer, in every particular case, depends upon the peculiar facts and conditions of the new industrial undertaking on account of which the assessee claims exemption under section 15C. No hard and fast rule can be laid down. Trade and industry do not run in earmarked channels and particularly so in view of manifold scientific and technological developments. There is great scope for expansion of trade and industry. The fact that an asses ..... X X X X Extracts X X X X X X X X Extracts X X X X
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