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TMI Blog1976 (10) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... come-tax Appellate Tribunal, Chandigarh, has referred the following question for our decision : " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in allowing the deduction under section 80J of the Income-tax Act, 1961 ? " The assessee, a private limited company, carried on several businesses, amongst which is a cold storage business, a new indu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... om the cold storage business. The assessee wanted to adjust the profit against this "deficiency" under section 80J of the Income-tax Act for the year 1970-71 and against the "deficiency" of the earlier years permitted to be carried forward under section 80J(3). The revenue, notwithstanding the circumstance that the losses, depreciation and development rebate, of earlier years pertaining to the col ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ains of the cold storage business was to be treated as a loss so as to deprive the assessee of the benefit of the "deficiency ". In other words, the whole of Rs. 1,51,011 was to be included in computing the total income without any deduction for "deficiency ". The Tribunal, rightly in our opinion, did not accept the revenue's contention. Section 80J, in so far as it is relevant, is as follows: " ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year (the amount calculated as aforesaid being hereafter, in this section, referred to as the relevant amount of capital employed during the previous year) ....... " There is nothing in the language of section 80J to warrant the contention of the department. It appears to be opposed to the language of section 80J. Having included a sum of Rs. 1,51,011 from the profits and gains of the cold storag ..... X X X X Extracts X X X X X X X X Extracts X X X X
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