9911796707
TMI Blog1983 (8) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... taxation. Later, the company had taken into account the tax liability for 1967-68 at Rs. 1,11,469 and for 1968-69 at Rs. 1,73,668. The ITO found that in the balance-sheet the assessee had made a provision for tax on the first day of the accounting year, viz., October 1, 1969, at Rs. 3,66,566. He, therefore, deducted the said sum of Rs. 3,66,566, from the capital employed in aluminium powder unit No. 1 and computed the capital in that unit at Rs. 31,00,503. As regards the aluminium paste unit No. II, the ITO accepted the claim of the assessee that relief under s. 80J is due on this unit as well. However, he found, that this bad to be worked out only for 18 days and accordingly he limited the relief under s. 80J on a proportionate basis to R ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the provision for taxation made in the balance-sheet cannot be excluded from the capital employed under rule 19A(3) for the purpose of computation of relief under section 80J ? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the assessee is entitled to the deduction under section 80J at six per cent. on the capital employed without it being limited on a proportionate time has is though the concern had worked only for a part of the year ? So far as question No. 2 is concerned, it is concluded by the judgment of this court in CIT v. Simpson Company [1980] 122 ITR 283. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rects the aggregation of all the amounts representing the value of the assets as on the first day of the computation period of the undertaking to which s. 80J applies and sub-r. (3) provides for certain deductions from the said aggregate determined as per sub-r. (2). Sub-rule (3) says that the aggregate of all the amounts borrowed and debts owed by the assessee, including the amount due towards any liability of tax, will have to be deducted under the rule. Explanation 2 to this sub-rule defines as to what are the amounts due towards any liability in respect of tax. It says that in the case of advance tax due under the provisions of the Act, it should be taken to have become due on the date on which such advance tax has become payable and in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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