9911796707
TMI Blog1977 (10) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... yr. 1973-74 likewise the capital employed was at Rs. 7,46,245. The assessee claimed rebate under s. 80-J at 6 per cent of the above amount. The ITO in working out the capital noted that the above amount of Rs. 7,42,752 and Rs. 7,46,244 represented not merely the assessee s own funds but also money borrowed. The ITO s point was that in so far as the main division of the assessee s business had not only own capital but also borrowed capital and the new undertaking had been advanced from the consolidated fund of the main division, the latter capital should also regarded as composed partly of own capital and partly borrowed capital. In this view of the matter holding that relief under s. 80-J should not be granted on borrowed capital the ITO wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the actual investment of money in the business. The money invested in the business may consist of the assessee s own monies, borrowed funds, funds of different types or exclusively borrowed funds only. But what the provisions of s. 80-J are concerned is only with the assessee s own money invested in the business. Reference was made in this connection to a decision of the Tribunal in STA 54 to 56 (Mds)/1973 and 221 to 223(Mds)/1973, dt. 29th Nov., 1975. 3A. The provisions of s. 80J are intended to give relief to assessee who makes investments in new undertakings to as to advance the cause of new industries. The amount invested in an industry is not the same as the proprietor s money invested in industry. A proprietor may invest his own ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pital should be Rs. 10,52,062 and Rs. 12,79,675 based on the judicial decisions. Certainly this is supported by our decision in the present case also. The assessee, however, has on his own accord taken the capital figures at Rs. 7,42,752 and Rs. 7,46,244 by deducting the liabilities from the value of the assets. In other words, the claim made before us has not been made before the ITO or the AAC. We do hold in the light of our decision above supported by judicial decisions that the assessee s claim in this regard is correct, but for the above reasons we cannot entertain the same. We have no doubt that the assessee could obtained the necessary relief from the Departmental Authorities if proper application is made to them. 5. It may be ment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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