- (1.) The Income-tax Appellate Tribunal, Allahabad, has referred the following question of law under Section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), for opinion of this Court: Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding that the assessee was entitled to the deduction under Section 80J on the capital employed in the two chambers added to the existing cold storage?
(2.) The reference relates to the assessment years 1976-77 to 1978-79. Briefly stated the facts giving rise to the present reference are as follows:
(3.) The assessee-firm was running a cold storage. Amongst other things, it claimed relief under Section 80J, as a new industrial undertaking. The Income-tax Officer disallowed the claim on the similar reasons as given in the assessment years 1974-75 and 1975-76, namely, that the assessee did not employ 10 or more workers and that there was no separate independent viable unit which came into existence and that the new unit was formed by transfer of machinery, etc., previously used for business purposes. In short, the Income-tax Officer found that the conditions have not been fulfilled, for the assessment year 1976-77. Similar disallowance was made by the Income-tax Officer in respect of other assessment years under reference.;