- (1.)CIT (A) upheld the decision of the ITO on this point for the said three asessment years.
(2.)BEING aggrieved by the order of the CIT(A), the assessee moved the Tribunal. The Tribunal, on examination of the facts and the circumstances of the case and taking into account particularly the Board Circular No. F. No. 15/5/63-IT-(Tribunal), dt. 13th Dec., 1963, which was issued in relation to S. 84 of the Act, in this connection had held that :
"10. We have examined the matter. The lower authorities have rejected the assessee's claim under s. 80J because its case is hit by the provisions of S. 80J(4)(ii). However, the Board Circular referred to supra is directly on the point, and according to it in the case of the type under consideration, the claim for deduction under S. 84 is admissible. The provisions of S. 80J are in material respects, identical with those of S. 84. Therefore, the Board circular referred to above will equally apply to s. 80J. 11. It is well-settled that any circular of the Board which confers a benefit on the assessee must be followed by the departmental officers. In view of the foregoing therefore, we direct the ITO to examine the assessee's claim in the light of the Board circular referred to supra and to allow to the assessee the deduction admissible to it under S. 80J. . . . . ."
Mr. prasad, the learned counsel appearing on behalf of the Revenue, submitted that the circular dt. 13th Dec., 1963, was issued by the Board in connection with S. 84 and not in connection with the provisions of S. 80J and as such the said circular had no manner of application and accordingly the Tribunal was wrong in granting relief to the assessee on that score relying on t hat circular.
The learned counsel appearing on behalf of the assessee submitted that the said circular is applicable in the facts and circumstances of the case, in view of the fact that the provisions of S. 84 and S. 80J were in pari materia and the Tribunal has rightly held that the said circular, which was issued in connection with S. 84, is applicable in full force in respect of the cases under S. 80J.

(3.)THE provision of S. 84, as originally there, is as follows :
"Income of newly established industrial undertakings of hotels.-(1) Save as otherwise hereinafter provided, income-tax shall not be payable by an assessee on so much of the profit and gains derived from any industrial undertaking or business of a hotel or from any ship, to which this section applies, as does not exceed six per cent per annum on the capital employed in such undertaking or business or ship, computed in the prescribed manner. (2) The section applies to any industrial undertaking which fulfills all the following conditions, namely :- (i) it is not formed by the splitting up, or the reconstruction of a business already in existence; (ii) it is not formed by the transfer to a new business of a building machinery or plant previously used for any purpose; (iii) it manufactures or produces articles or operates one or more cold storage plants, in the part of India, and has begun or begins to manufacture or produce articles or to operate such plant or plants, at any time within the period of twenty-three years next following the 1st April, 1948, or such further period as the Central Government may, by notification in the Official Gazette, specify with reference to any particular industrial undertaking;"

;