1984 (7) TMI 61

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..... ered by JAGANNATHA SHETTY J.-These references under s. 256(1) of the I.T. Act, 1961, are at the instance of the Revenue. The common question referred is: " Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is right in law in holding that the assessee is entitled for relief under section 80J of the Act ? " The assessee is a registered firm with it .....

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..... nvestment of one's own funds. He directed the ITO to verify the correctness of the amount from the records and then allow relief under s. 80J. The Revenue preferred an appeal to the Tribunal. The Revenue contended before the Tribunal that borrowed capital was utilised in the new unit but the Tribunal found that the firm had sufficient capital of its own which was sent to the branch and that ther .....

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..... on. But the amendment makes little difference on the merits of the matter in view of the finding recorded by the Tribunal that there is no nexus between the money borrowed by the head office and the amount sent to the branch unit. Apart from that, the Bombay High Court in Indian Oil Corporation Ltd. v. Rajagopalan ITO [1973] 92 ITR 241, while interpreting r. 19A, held that in respect of each und .....

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