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TMI Blog1984 (7) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Income-tax Act, 1961, for the assessment year 1970-71, the same representing the amount on which tax was not payable under section 84 for the assessment year 1967-68 ? (2) Whether, on the facts and in the circumstances of the case, the assessee is entitled to deduction of 8% of Rs. 69,37,362 being the profit and gains from the business computed for the assessment year 1970-71, before setting off the unabsorbed development rebate relating to the assessment year 1967-68 ? " In T.C. No. 1266 of 1979, the following two questions have been refer-red by the Tribunal on a direction given by this court under s. 256(2) ofthe I.T. Act: " (1) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal's finding that th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the earlier years, we are of the view that the Tribunal has in fact proceeded on the basis that the assessee was entitled to carry forward the deficiency under s. 84 against the profits of the year 1970-71. We have to, therefore, answer question No. 2 referred in T.C. No. 1266 of 1979 in the affirmative and against the Revenue. As regards question No. 1 in T.C. No. 189 of 1978 and question No. in T.C. No. 1266 of 1979, we find that both the questions cover the two aspects of the same question. The two questions relate to the question as to when the commercial production was started by the assessee and whether the assessee is entitled to carry forward s. 80J relief and get a set-off for the assessment year 1970-71. In this case, the Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 63 which means that the assessee should have started commercial production even in the year 1960. (3) The assessee has in fact sold goods worth about Rs. 3,26,610 during the year ending September 30, 1961, and this would show that commercial production has in fact started in 1960. The Tribunal has considered all these three factors referred to above and has held that what the auditors refer in the letters dated June 20, 1963, and April 3, 1964, is only the trial production and the production referred to by them is not commercial production. So far as the claim for depreciation in the year 1961-62 is concerned, the Tribunal has held that since the assessee has used machinery for trial production, they are entitled to claim depreciation and t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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