JUDGEMENT
U.T. Shah, Vice-President -
(1.)THE only point involved in these appeals is as to whether the assessee would be entitled to deduction under Section 80-J of the Act in respect of Barges owned by it.
(2.)The assessee is a company. The assessment years are 1980-81 and 1981-82 and the relevant previous years are the financial years ended on 31st March, 1980 and 31st March, 1981 respectively.
The facts in brief are that the assessee is carrying on mining operations and shipping the ore with the help of barges owned by it. The assessee also hires out barges to other parties. These barges are ranging between 750 and 1000 dwt. and are self-propelled.
(3.)ON the aforesaid facts, the assessee claimed deduction Under Section 80-J of the Act in respect of the barges owned by it which the I.T.O. had accepted in the assessments framed Under Section 143(3) read with Section 144B of the Act. However, the only dispute between the assessee and the I.T.O. was in respect of the treatment to be given to liabilities in working out the 'capital employed'. The assessee's contention was that the liabilities should be ignored while the I.T.O. was of the opinion that in view of the retrospective amendment made in Section 80-J of the Act by the Taxation Laws (Amendment) Act, 1980, the liability has to be considered in determining the capital employed. The I.T.O. therefore, deducted the amount of liabilities from the value of the barges and granted deduction Under Section 80-J of the Act accordingly.
Click here to view full judgement.
Copyright © Regent Computronics Pvt.Ltd.