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TMI Blog1983 (11) TMI 89X X X X Extracts X X X X X X X X Extracts X X X X ..... ('the Act') on the gross value of the assets without deducting liabilities. The ITO had allowed the claim in these two years and completed the assessments accordingly. Subsequently, the ITO rectified the assessments under section 154 of the Act and allowed relief on the net capital employed in the business and not on the gross capital as allowed in the original assessments. The assessee appealed t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eme Court has admitted the writ petitions challenging the validity of the amendment. He further urged that the very applicability of the amendment of section 80J with retrospective effect to a completed assessment is a debatable one and so, the provisions of section 154 cannot be invoked. He relied on a decision in J.M. Shah v. J.M. Bhatia, AAC [1974] 94 ITR 519 (Bom.). The learned departmental re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of section 80J with retrospective effect was on the statute book. The Commissioner (Appeals) had the power to apply the amended provisions. In our view, he has rightly applied the said provision. In view of the said amendment of section 80J, the order under section 154 made by the ITO is to be upheld. If any amendment comes in with retrospective effect pending an appeal, it must be given effect ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ant case. The amendment of section 80J by the Finance (No. 2) Act, 1980, with retrospective effect is applicable to these two years. In view of the above amendment, the Commissioner (Appeals) had power in confirming the order of the ITO made under section 154 as there is a mistake in the assessment order in view of the above amendment. The decision of the Bombay High Court in J.M. Shah's case is d ..... X X X X Extracts X X X X X X X X Extracts X X X X
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