1987 (8) TMI 51 - HC - Income Tax

Summary

The High Court of Orissa dismissed three writ applications by limited companies claiming deduction under section 80J of the Income-tax Act, 1961. The retrospective amendment by the Finance (No. 2) Act of 1980 clarified that the deduction would be based only on the assessee's own capital, excluding borrowed funds. The petitioners were not entitled to relief as per the Supreme Court ruling in Lohia Machines Ltd. v. Union of India [1985] 152 ITR 308. The writ applications were dismissed with no costs.