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TMI Blog1988 (9) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment years 1978-79 and 1979-80, wherein he directed the Income-tax Officer to work out the deduction under section 80J of the Income-tax Act for the earlier years and to carry forward and set off the deficiency so worked out against the profits relating to the assessment years 1978-79 and 1979-80 ?" The material facts giving rise to this reference, briefly, are as follows: The assessee is a private limited company deriving income from manufacture and sale of caps for bulbs and tubelights. The assessee commenced its business during the accounting period relevant to the assessment year 1972-73. From the assessment years 1972-73 to 1977-78 and even during the course of the assessment proceedings for the assessment year 1978-79, the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8-79, the assessee suffered heavy losses and, therefore, deduction under section 80J was required to be carried forward as per provisions of law. The Commissioner of Income-tax (Appeals) also upheld the contention of the assessee that since necessary material in the form of balance-sheet and depreciation chart showing purchases and additions made to the plant and machinery was available on record, the claim under section 80J of the Act could be entertained and allowed. The Commissioner of Income-tax (Appeals) further found that the claim of the assessee was fully covered by the provisions of sub-section (3) of section 80J of the Act. In this view of the matter, the Commissioner of Income-tax (Appeals) partly allowed the appeals arising out ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sh High Court in CIT v. Veljan Hydrair (P.) Ltd. [1985] 151 ITR 734 (p. 736): "It is uniformly held by the Allahabad, Calcutta and Madras High Courts in Addl. CIT v. Sheetalaya [1979] 117 ITR 658 (All), Indian Aluminium Co. Ltd. v. CIT [1980] 122 ITR 660 (Cal) and CIT v. Bluemount Ceramics Ltd. [1980] 123 ITR 385 (Mad), that for the years in which there was no profit, the assessee is under no obligation to claim deduction under section 80J. It is also held that even though no such claim is made, the Income-tax Officer ought to have granted the benefit under the said section in the year in which profit is made. Sub-section (3) of section 80J, which is the relevant sub-section herein, does not expressly require that a claim should be made b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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