9911796707
TMI Blog1979 (10) TMI 131X X X X Extracts X X X X X X X X Extracts X X X X ..... marks. "Total income as has been computed in the original assessment subject to appellate orders." The ITO asked the assessee as to why the relief allowed under s. 80J should not be withdrawn. The ITO allowed time for 15 days to the assessee. No explanation was filed. He, therefore, withdrew the relief under s. 80J for Rs. 56,870 allowed in the original assessment. 2. The assessee came in appeal before the AAC and contended that as per Board instruction before re-opening the assessment, the ITO should have intimated as to why the assessment was being re-opened. He should have allowed an opportunity to file explanation. Since no such step was taken, the assessment was ab initio void. It was further stated that the deduction was allowed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... preme Court in M/s Indian Eastern Newspaper Society, there was no information within the meaning of s. 147(B) and, therefore, the re-assessment proceedings were invalid and consequently, the assessment should be quashed. 4. Shri Lall, the Sr. departmental representative distinguished the various cases cited by the assessee's counsel and strongly relying on the order of the AAC urged that the assessment under s. 147 (b) should be maintained. 5. It would be relevant to mention that the assessee's counsel limited his argument only on the legal issue. But the argument was not advanced on merit. It has been stated earlier that the assessee was having bottling unit whereas a bakery unit was started subsequently and a relief of Rs. 56,870 wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Rs. 56,870 was not allowable from the loss of Rs. 1,66,421. it was rightly not set off from the income of bottling division. The benefit under this section is confined to the new industrial undertaking and does not extend to the profit of any other business activities even though closely connected with that undertaking. In this connection reference may be made to the following decisions. (a) Ashok Motors Limited vs. CIT, 41 ITR 397. (b) CIT vs. Standard Motors Products of India Ltd. 46 ITR 814. (c) Industrial Gases Ltd vs. CIT 58 ITR 317. The ITO however, ordered that the relief of 56,870 will be carried forward under s. 80J(3) of the IT Act, 1961 to be deducted from the future profits of the bakery unit, if any, Sd/- 3rd August ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... titled to relief under s. 80(J) of the IT Act, being an industrial undertaking. As per the provisions of the said section we are eligible for exemption of income of Rs. 56,870 being amount equal to 6 per cent of the capital employed for the Accounting Year ending 31st March, 1975. The statement showing the computation is enclosed herewith. We propose to declare a dividend out of our income for the asst. yr. 1975-76 and for this purpose we would request you to kindly grant us a certificate which would enable us to declare and pay dividends without deduction of tax at source to the extent of income mentioned above. We would be grateful if the certificate as requested is granted at an early date. Thanking you, Yours faithfully, For S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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