9911796707
TMI Blog2000 (12) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... 1981 this court directed the Tribunal to refer the following questions : "(1) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the Income-tax Officer was not correct in restricting the relief under section 80J on time basis when the new unit had worked only for 8 months during the previous year relevant to the assessment year 1974-75? ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r relief granted by Parliament by laying stress on any ambiguity here or there." By the observation so made, this court has allowed such an exemption in favour of the assessee. The ratio of that decision is applicable to this case and the first question is answered in favour of the assessee and against the Revenue. With regard to the issue raised in the second question it was answered by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d rule 19A was made with a view to giving effect to section 80J a change was deliberately brought about and long-term borrowings from approved sources were brought into computation of the 'capital employed'. This change was, however, short lived and with effect from April 1, 1972, the original position was restored. The Finance Minister made it clear by way of a preface in his Budget Speech that h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xclusion was contrary to its true intent, did not take any steps to rectify the position. Then again, while moving the Finance (No. 2) Bill, 1980, the Finance Minister stated on the floor of the House that the intention of Parliament has always been to exclude borrowed monies in computing the 'capital employed' and, therefore, section 80J was sought to be amended by incorporating rule 19A in the s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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