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TMI Blog1977 (12) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... ts new cold storage plant constructed at Farukhabad and classified as Unit No. II, by his order of rectification passed under s. 154 of the Act, on4th Nov., 1974. The ITO gave two reasons for his action. First he pointed out that there was no separate profit and loss account and balance-sheet in respect of this unit and that the assessee has worked out the profit in the ratio of 55 per cent and 45 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oth grounds and upheld the rectification withdrawing the relief originally allowed under s. 80J of the Act. Aggrieved by this order of the AAC, the assessee is on further appeal to the Tribunal. 3. We have heard Shri C.S. Aggarwal the ld. counsel for the assessee and Shri C.V. Gupte for the Revenue and carefully considered their submissions in the light of the materials placed by the assessee in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0, shows that the ITO allowed a relief of Rs. 26,986 as income not taxable under s. 80J of the Act. The Revenue does not dispute that the statements referred to above, were filed by the assessee, along with its return of income or in the course of the assessment proceedings. 5. In the light of the above undisputed facts of the case, we have no hesitation in accepting the assessee's plea that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... time of assessment, which is at page 28 of the paper book. It is also open to debate whether such separate profit and loss account and balance-sheet should be prepared for a new industrial undertaking to qualify for relief under s. 80J, as there is no such requirement either in s. 80J or under r. 19A of the Rules. 7. The second objection raised by the ITO regarding the calculation of capital e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ratio of the decision of the Supreme Court in T.S. Balaram, ITO vs. Volkart Bros(3). directly applicable to the facts of the present case. The decision in T.S. Rajan vs. CED(4), relied on by Shri C.V. Gupte is of no help to the Revenue, in the right of our discussion above. 9. In the result, we allow the appeal, setting aside the orders of the authorities below on this point and direct the ITO ..... X X X X Extracts X X X X X X X X Extracts X X X X
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