2005 (5) TMI 14

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..... rned Tribunal was justified in law in allowing the benefit of deduction under section 80J to the assessee for the assessment year 1978-79?" The present reference relates to the assessment year 1979-80. Briefly stated the facts giving rise to the present reference are as follows: The applicant is running a cold storage in Budaun. Originally the cold storage was built in 1967 or 1968. After this an additional chamber was completed during the periods 1977-78 and 1978-79. This chamber had been constructed inside the same boundary-wall. The assessee claimed relief under section 80J on the capital employed in this new chamber. The Income-tax Officer found that this was merely an expansion of the existing cold storage and it had common potat .....

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..... r the new unit is capable of functioning by itself or did it require the functioning of the earlier unit before it could function. The Commissioner of Income-tax (Appeals) gave a finding that the new chamber was in a position to function independently even if the older chamber was closed and was not functioning. He, therefore, allowed the benefit under section 80J to the assessee. The Revenue preferred the appeal before the Income-tax Appellate Tribunal. The Tribunal has upheld the order passed by the Commissioner of Income-tax (Appeals) on the following grounds: "We have considered the facts of the case. The question of new industrial undertaking and its reconstruction for the purpose of grant of deduction under section 80J had been co .....

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..... s not been rebutted before us. The finding in the case of another cold storage would not apply as there it was found that there was no additional staff and there was no separate electricity connection and the new units were not independent of the working of the old unit. As in the present case the new unit was in a position to function independently with the help of separate staff and additional power connection the benefit under section 80J is allowable to the assessee. The facts in the present case are distinguishable from the facts as considered by the Tribunal in the case of G.T. Cold Storage and Ice Factory (I.T.A. No. 4541 of 1979, Delhi Bench dated April 22, 1981) and we, therefore, hold that the Commissioner of Income-tax (Appeals) .....

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