1979 (10) TMI 122

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..... capital employed under the head "Plant and Machinery" for the purpose of grant of relief under s. 80J of the IT Act, 1961: Special machinery and plant Rs. 1,66,510.03 General machinery and plant Rs. 3,98,842.15 Kirloskar 3/4 H.P. Motor Rs. 692.82 Transformer sub-station, oil circuit breaker, switchboard installation Rs. 2,23,387.00 .....

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..... previous year should be included in the computation of the capital employed for the purpose of working out relief under s. 84(1)(now s. 80J(1). The same view was taken by the Gujarat High Court in CIT vs. Cibatul Ltd. (2) and the Karnataka High Court in Ravi Machine Tools (P) Ltd. vs. CIT (3) and the Bombay High Court in CIT vs. Alcock Ashdown Co. Ltd.(4). Following the above decisions we would .....

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..... l. 4. We have heard the parties. Under s. 80A(2) the aggregate amount of the deductions under Chapter VI-A shall not, "in any case, exceed the gross total income of the assessee". s. 80B (5) defines gross total income" as the total income computed in accordance with the provisions of this Act, before making any deduction under Chapter VI-A or under s. 280-O. The legal position thus is that the d .....

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