Rastogi, J. - (1.) The Income-tax Appellate Tribunal, Allahabad Bench, Allahabad, has referred the following question for our opinion : "Whether, on the facts and in the circumstances of the case, the I.T.A.T. was justified in holding that it is not a case of 'reconstruction' of a business already in existence and that the assessee is entitled to deduction under Section 80J of the Income-tax Act, 1961 ?"
(2.) The facts giving rise to this reference, briefly stated, are that the respondent-assessee had purchased a cold storage plant which business was being run under the name and style of M/s. Shankar Industries, Faizabad Road, Lucknow, on February 1, 1970. The purchase price was Rs. 1,44,647, the details of which were as under : Rs. Land 6,000 1. Building 69,347 Rs. 1,44,647 2. Machinery 69,3003
(3.) After purchasing this cold storage plant, the assessee started its reconstruction from September 1, 1970. The cost of the new construction came to Rs. 2,00,421, excluding the cost of land. Some material of the old building was also utilised in making this construction. As for the old machinery, some was sold for a sum of Rs. 38,880 and a part, the opening value of which was Rs. 15,200, was utilised in the newly constructed plant.;