- (1.) UNDER section 256(1) of the Income-tax Act, 1961, the Tribunal has stated the following question : "Whether, on the facts and in the circumstances of the case, the Tribunal was correct in holding that loans taken should not be excluded from the assessees capital for working out deduction under section 80J ?"
(2.) THE assessee here is M/s. Lohia Machines Pvt. Ltd. In the case of this very assessee, the Supreme Court, in Lohia Machines Ltd. v. CIT, 1985 152 ITR 308, held that borrowed capital cannot be taken into consideration and cannot be included in the assessees capital for working out the deduction provided under section 80J of the Income-tax Act. Following that decision, the question referred is answered in the negative, i.e., in favour of the Revenue and against the assessee.;