9911796707
TMI Blog1981 (3) TMI 151X X X X Extracts X X X X X X X X Extracts X X X X ..... ice at Bhandara. The main object of the assessee-company was to manufacture bidis. For this purpose the assessee had taken a licence for manufacturing of bidis under the Bidis & Cigar Workers (Conditions of Employment) Act, 1966. In the assessment for the year 1975-76, being the first assessment year, the assessee claimed exemption under section 80J and section 80HH on the ground that the assessee-company was newly established undertaking and had fulfilled all the conditions, laid down by section 80J and section 80HH. While the ITO allowed the assessee's claim under section 80J he rejected the assessee's claim under section 80HH for the assessment year 1975-76. On an appeal by the assessee before the AAC, the AAC held the issue in favour o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cumstances, there could not be a departure from the finding given after due enquiry by the predecessor-in-office. In the circumstances of the present case, he gave a positive finding that during the year 1975-76, while claim under sections 80J and 80HH was rejected though substantially the conditions for the allowance were the same, many of the facts pointed out by the ITO in the assessment order for the year 1976-77 though they had an important bearing on the decision (sic). He, therefore, held that the ITO during 1976-77 departed from the view taken by his predecessor in 1975-76 with adequate justification. 5. The assessee has, therefore, filed the present appeals before the Tribunal on the ground that the Commissioner (Appeals) erred in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 80HH for the same year. The findings of both these authorities have become final and conclusive so far as the assessment year 1975-76 is concerned. Now the question is whether the ITO can reject the assessee's claim for succeeding years in respect of the same business in respect of the same assets under any circumstances. Under the provisions of section 80J(1) relief at the rate of 6 per cent per annum on the capital employed in the industrial undertaking may be computed under the provisions of the section. Further under section 80J(2), the relief has to be granted in computing the total income in respect of the assessment year relevant to the previous year in which the industrial undertaking began to manufacture or produce articles ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ate, which could be withdrawn in subsequent years for breach of certain conditions. Without disturbing the relief granted in the initial year, the ITO could not examine the question again and decide to withdraw or to withhold the relief already granted under section 80J. As to the High Court decision of the same High Court in the case of CIT v. Satellite Engineering Ltd. relied in support of the revenue's case by the learned departmental representative, we may state that this case was cited also before the learned judges of the Gujarat High Court in the case of Saurashtra Cement & Chemical Industries Ltd. and the learned Judges have distinguished the circumstances in which the decision in the case of Satellite Engineering Ltd. rendered and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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