9911796707
TMI Blog1988 (7) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... e Income-tax Act, 1961 ?" The facts are that the assessee-company which is engaged in the manufacture of steel rolling mills, started a new industry for the manufacture of hot rolled mill steel and high carbon wire rods in the previous year corresponding to the assessment year 1962-63. There was no profit from this new unit during that year. There were, however, profits in the assessment years under reference. The assessee, in the circumstances, made a claim under section 84 of the Act. The Income-tax Officer computed the amount of profits in the respective years on which, according to him, the relief was allowable, at Rs. 3,10,331 for the assessment year 1963-64, Rs. 3,97,761 for the assessment year 1964-65 and Rs. 5,61,146 for the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion was called for on the merits of the case and the value of the uninstalled plant and machinery had to be included in the capital employed by the new industrial undertaking. The Appellate Assistant Commissioner rejected both these contentions and confirmed the Income-tax Officer's orders on the above points. The assessee came in appeal to the Tribunal. Learned counsel for the assessee made before the Tribunal the same submissions which were made by him before the Appellate Assistant Commissioner. The Tribunal held that it was difficult to accept that the provisions of section 154 of the Act could be applied to the case of the assessee. According to the Tribunal, on an interpretation of the provisions, two conceivable opinions were poss ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... take apparent from the record and the Tribunal was justified in allowing the appeal of the assessee. In any event, it must be observed that even on merits, the question has been decided in favour of the assessee. In other words, the Income-tax Officer, in the original assessment, rightly included the value of the uninstalled and unsecured plant and machinery. In CIT v. Indian Oxygen Ltd. [1978] 113 ITR 109 (Cal), this court has held that whether an asset is used or not, it will still be included in the capital employed in the business. For the reasons aforesaid, we answer the question in this reference in the affirmative and in favour of the assessee. There will be no order as to costs. K. M. YUSUF J. - I agree. - - TaxTMI ..... X X X X Extracts X X X X X X X X Extracts X X X X
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