9911796707
TMI Blog1987 (5) TMI 99X X X X Extracts X X X X X X X X Extracts X X X X ..... as follows: "5.1 It is seen from the balance sheet and the information filed by the assessee that capital employed works out to a negative figure. The assessee will not, therefore, be entitled to any relief under s. 80J." The ITO has taken the capital employed as on 1st Oct., 1976. It was the assessee s case that the business was set up from 1st May, 1977 and, therefore, the capital employed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was this period which was taken into account. Therefore, according to him the capital employed as on 1st Oct., 1976 has to be taken into account. On the other hand, the learned counsel for the assessee submitted that the computation period here meant the previous year which was defined in s. 3. He drew our attention to sub-cl. (1) (e)(i) of that section which runs as follows: "(e) In the case o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le Product Ltd. vs. CIT (1954) 26 ITR 151(Bom) 3) CIT vs. Sarabhai Sons Pvt. Ltd. (1973) 90 ITR 318 (Guj) 4) Bhodilal Mengharaj Co. Pvt. Ltd. vs. CIT (1979) 13 CTR (Bom) 101 : (1979) 119 ITR 968 (Bom) 5) CWT vs. Andhra Valley Power Supply Co. Ltd. 1978 CTR (Bom) 578 : (1978) 114 ITR 783 (Bom). 3. We are of the view that the assessee here is entitled to succeed. Irrespective of the period ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Further even taking into account the argument of the ld. departmental representative based on definition of the term 'previous year' in s. 3, the aforesaid sub. cl. (1)(e)(i) of that section does not support the ld. departmental representative, but supports the argument of the assessee s ld. counsel as stated above. Therefore, we confirm the order of the CIT(A) and reject this appeal. - - Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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