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TMI Blog2000 (3) TMI 54X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax (Appeals) in including the amount of Rs. 10,76,283 representing the value of incomplete jobs for the computation of capital for the purpose of calculating the relief under section 80J of the Income-tax Act ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the reassessment of the assessment year 1970-71, should be made also on the facts and realities which was not prevalent during the previous year relevant to the assessment year 1970-71 ? (3) Whether, on the facts and in the circumstances of the case, the Tribunal is justified in holding that the term 'agreement' as envisaged in clause (b) of rule 19A(3) also included an agreement which provides the facility of extend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of CIT v. Alcock Ashdown and Co. Ltd. [1997] 224 ITR 353. Their Lordships after considering whether section 80J relief can be given on a workshop still under construction held that the amount representing the value of plant and machinery under construction could be taken into account in determining the capital employed. Learned counsel for the Revenue placed reliance on the view taken by the Income-tax Officer. Heard learned counsel for the parties. In the case of Alcock Ashdown and Co. Ltd. [1997] 224 ITR 353 (SC), their Lordships observed as under: "We are of the opinion that the moment an asset is acquired or purchased for the purpose of the business, it is capital employed, though the asset as such is not actually util ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subsequently that agreement was modified for repayment and it was permitted to repay the loan within eight years. Their Lordships held that when the term of the agreement was modified and provided for repayment beyond seven years, then that should be included in the capital computation for the purpose of the Companies (Profits) Surtax Act, 1964. Their Lordships, thus, upheld the view taken by the Gujarat High Court in the case of this very assessee in surtax matter and thereafter the Gujarat High Court has followed the view taken in New India Industries Ltd. v. CIT [1977] 108 ITR 181, for the purpose of relief under section 80J in the case of this assessee, that is, in the case of CIT v. New India Industries Ltd. [1993] 201 ITR 208 (Guj), ..... X X X X Extracts X X X X X X X X Extracts X X X X
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