Sabyasachi Mukharji, J. - (1.) In this reference under Section 256(1) of the I.T. Act, 1961, the following question has been referred to this court: " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the assessee was entitled to deduction under Section 80J of the Income-tax Act, 1961, read with Rule 19A of the Income-tax Rules, 1962, in respect of the second unit of the cold storage for the assessment year 1970-71 ? "
(2.) The assessee is a company and the relevant assessment year is 1970-71, corresponding previous year being the calendar year which ended on December 31, 1970. The relevant assessment was completed by the ITO by taking the status of the assessee-company as a company in which the public were not substantially interested. However, in the body of the assessment order there was no discussion either on this issue or on the other relating to the rebate under Section 80J of the I.T. Act, 1961, in respect of the new chamber in the cold storage.
(3.) Being aggrieved by the said decision, the assessee went up in appeal before the AAC. The AAC rejected the contention of the assessee. Relating to the deduction under Section 80J of the I.T. Act, 1961, it was submitted before the AAC that during the previous year relevant to the assessment year 1969-70, the company had completed one new chamber in its cold storage for which the assessee-company had erected a completely new building and placed new racks, new overhead coils, ducting and cooling implements. It was also stated before him that the new chamber was entirely separate from the old and entirely new materials were utilised except for certain old plant and machinery whose written down value was given at Rs. 31,603. The AAC, however, noted that a similar claim was put forward in the assessment for the assessment year 1969-70, which was also turned down by the ITO and this was upheld in appeal. Following the 'same and in view of the old plant and machinery having been used in the new industrial undertaking, the assessee's claim for deduction under Section 80J was turned down.;