2005 (7) TMI 79

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..... ny infirmity in the concurrent findings recorded by the Commissioner of Income-tax (Appeals) and the Tribunal that only liabilities pertaining to the new industrial undertaking are to be deducted from the aggregate of the value of the assets of the new industrial undertaking. The question referred is therefore answered in the affirmative, i.e., in favour of the assessee and against the Revenue. - .....

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..... ief worked out to Rs. 8,17,134. On going through the balance-sheet of the new industrial undertaking of the assessee, namely, Ankleshwar unit, the Assessing Officer found that a sum of Rs. 1,08,95,124 was shown as having been transferred from the head office, which was admittedly the old unit. According to the Assessing Officer, because the old unit had certain borrowings in its separate balance-s .....

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..... could not be reduced by a sum of Rs. 59,85,547 for working out the capital employed. The Commissioner of Income-tax (Appeals) in the process followed the decision rendered by the Bombay High Court in the case of Indian Oil Corporation Ltd. v. S. Rajagopalan, ITO [1973] 92 ITR 241. He also referred to a Circular No. 380 dated April 10,1984, issued by the Central Board of Direct Taxes (CBDT) reporte .....

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..... king is required to be computed. Sub-section (1A) provides that for the purpose of section 80J the capital employed in an industrial undertaking shall be computed in accordance with clause (II) to clause (IV). As per clause (II) the aggregate of the amounts representing the values of the assets as on the first day of the computation period of the undertaking is to be ascertained in the first insta .....

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..... stated in the aforesaid Circular No. 380 dated April 10, 1984. In the circumstances, it is not possible to find any infirmity in the concurrent findings recorded by the Commissioner of Income-tax (Appeals) and the Tribunal that only liabilities pertaining to the new industrial undertaking are to be deducted from the aggregate of the value of the assets of the new industrial undertaking. The que .....

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