TMI Blog1975 (1) TMI 7X X X X Extracts X X X X X X X X Extracts X X X X ..... nafter referred to as " the Act "). The assessee is a limited company. The assessment year involved is 1966-67 of which the previous year is the calendar year ending on 31st December, 1965. In the previous year relevant to the assessment year 1964-65, the assessee had set up two new industrial units, namely, a fluorescent lamp making plant and automatic bulb blowing plant. Section 84 of the Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the capital employed in the business. " In accordance with this provision, the assessee claimed that the profits arising from the two undertakings in the relevant previous year should be added in the computation of the total capital for the purposes of relief under section 84 of the Act. The Income-tax Officer did not accept this claim. The Appellate Assistant Commissioner of Income-tax uphel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... during the previous year relevant to the assessment year 1966-67 as forming part of its total capital. This is not correct. The assessee had claimed the entire profits and the Income-tax Officer had disallowed the claim in toto. During the assessment year 1964-65, the assessee had similarly claimed the entire profits as forming part of the capital and the Income-tax Officer had allowed only half o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Income-tax Rules, 1962, the profits earned from the two new undertakings during the previous year relevant to the assessment year 1966-67 were to be included in the computation of the capital employed in the two new industrial undertakings ? " We have extracted rule 19(5) above which clearly provides that the profits earned from a new undertaking, until the contrary is shown, arises evenly du ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
