INCOME TAX OFFICER Vs. WESTERN INDIA BAKERS P LTD
INCOME TAX APPELLATE TRIBUNAL
Click here to view full judgement.
S.N. Rotho, Accountant Member -
(1.) THIS appeal has been filed by the department against the order dated 17-2-1981 of the Commissioner (Appeals) relating to the assessment year 1978-79, the previous year of which ended on 31-3-1978.
(2.) The only ground taken in this appeal states that the Commissioner (Appeals) erred in setting aside the ITO's order granting relief under Section 80J of the Income-tax Act, 1961 ('the Act') and directing the ITO to recompute the relief in the light of the Supreme Court decision to be delivered in future.
The assessee is a private limited company. It was entitled to relief under Section 80J. It claimed to calculate such relief on the gross assets without deducting the liabilities as was held in the case of Century Enka Ltd. v. ITO  107 ITR 909 (Cal.). The ITO did not agree. He referred to the recent amendment of Section 80J with retrospective effect and calculated the relief on the net assets after deducting the liabilities to third parties. The ITO completed the assessment accordingly.
(3.) THE assessee appealed to the Commissioner (Appeals) and contended that the validity of the retrospective operation of the recent amendment to Section 80J as per the Finance (No. 2) Act, 1980 was under the consideration of Supreme Court and so the matter should be decided in accordance with the final decision of the Supreme Court. THE Commissioner (Appeals) agreed with the contention of the assessee and set aside the decision of the ITO on the point with a direction to compute the relief under Section 80J in accordance with the final decision of the Supreme Court, which was expected very shortly.;
Copyright © Regent Computronics Pvt.Ltd.