1996 (3) TMI 24 - HC - Income Tax

Commercial Profit, Computation Of Capital, New Industrial Undertaking, Profits And Gains, Special Deduction, Work In Progress

Summary

The High Court of Karnataka upheld the Commissioner of Income-tax (Appeals) order regarding the inclusion of work-in-progress, machinery, and equipment in the computation of capital for relief under section 80J. The court also ruled that profits and gains before allowing current depreciation should be the basis for computing relief under section 80J. Additionally, the court directed the Income-tax Officer to allow exemption under section 80HH on commercial profits after allowing current depreciation. The decision was based on a previous court ruling in CIT v. HMT Ltd. [1993] 199 ITR 235.