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TMI Blog1987 (9) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... parties. The learned counsel for the assessee submitted before us that we should interpret the relevant provisions of law liberally so as to advances the benefit available to the assessee to cover in a particular assessment year, period of more than 12 months, if that the previous year of the assessee. For this, he supported the submissions with a reference and reliable on the judgment of the Madras High Court in the case of CIT v. Simpson Co. [1980] 122 ITR 283. In the case of the assessee, the previous year of the assessment year 1979-80 has been accepted by the revenue as consisting of 15 months. He, therefore submitted that the assessee should be given deduction u/s 80J for a period of 15 months taking 2 months as the base for which 6 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the statute. Since the Courts have held that the benefit of deduction u/s 80J of the Act is to be allowed for 5 assessment years as provided in.the statute in the process 6 per cent deduction has been allowed even in the assessment years, where the industrial undertaking worked for less than 12 months. He, however, submitted that by no stretch of imagination can lead to a justifiable argument that if the industrial undertaking adopts a previous year, which is more than the period of 12 months, then the deduction u/s 80J provided at 6 per cent per annum should also be proportionately enhanced. He submitted that for this proposition no authority is available and the claim of the assessee is preposterous and untenable. He supported the autho ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h Court in the case of Simpson Co. observed that the words "6 per cent per annum" are ordinarily applied to calculation of interest and in similar contexts but the words "per annum" could be inappropriate in a taxation statute levying tax on the income earned during the previous year, which is not necessarily a period of 12 months. According to theHon'ble Court, the words "per annum" in section 84 of the Income-tax Act, 1961 have been added only to ensure that the assessee would get for each of the 5 assessment years during which relief is available, 6 per cent on the capital employed. These words cannot be understood as indicating any broken period during which the assets were used. In making these observations theHon'ble Courtfurther he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chagla, C.J. in Maneklal Chunilal Sons Ltd. v. CIT [1953] 24 ITR 375 (Bom.) that, in conformity with the uniform policy which has been laid down in income-tax matters, whatever our view may be, we must accept the view taken by another High Court on the interpretation of the section of a statute, which is an all India statute. "It is, thus, clear that the Hon'ble Courts have interpreted the relevant provision to give the benefit of full 5 assessment years to an industrial undertaking satisfying the conditions laid down u/s 80J irrespective of the fact whether in any of the precious years relevant to any asstt. years, the period was less than 12 months. This, however, is on a very liberal interpretation of the relevant provisions of law as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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