1977 (10) TMI 18 - HC - Income Tax

Capital For Purposes, Computation Of Capital, New Industrial Undertaking, Question Of Law, Reference To High Court, Special Deduction, Supreme Court

Summary

The High Court of Bombay rejected the revenue's application for reference of a question regarding the distinction between "debts owed" and "debts due" for the purpose of section 80J relief. The Tribunal's decision was based on the Supreme Court's ruling in Kesoram Industries and Cotton Mills Ltd. v. Commissioner of Wealth-tax [1966] 59 ITR 767, which defined the concepts of "debt owed" and "debt due." The High Court held that no question of law arose, as the Supreme Court had already clarified the issue. The application was dismissed with costs.