Computing relief u/s 80J of Income Tax Act, 1961. - Income Tax - 933/CBDT

INSTRUCTION NO. 933/CBDT Dated : March 4, 1976 Section(s) Referred: 80J Statute: Income - Tax Act, 1961 Attention is invited to Board's Instruction No. 904 (F.No. 178/68/75-IT-AI) dated 16th December, 1975* on the above subject. 2. The Board desire to emphasize that while computing the relief admissible u/s 80J of I.T. Act, 1961 the profits and gains attributable to the new industrial undertaking should be carefully computed by applying the provisions of section 30 to 43A of the Act as if the new industrial undertaking is a separate business by itself. In other words, in determining the profits earned by a new industrial undertaking for the purposes of granting relief u/s 80J, no item of expense or other allowance including unabsorbed depreciation and development rebate relating to the new industrial undertaking should be allowed as a set off against the profits of any other unit or other heads of income of the assessee, even though for the purpose of determining the total income such a set off has to be made under the law. In this connection, the decision of the Madras High Court in the case of Rejaplayam Mills Ltd. (78 ITR 677) may be referred to. 3. The above instructions may be brought to the notice of all officers working in your charge.