Ajit K.Sengupta, J. - (1.) In this reference under Section 256(1) of the Income-tax Act, 1961, two questions of law have been referred to this court for the assessment years 1972-73, 1974-75 and 1976-77, one at the instance of the assessee. The question which has been referred to this court at the instance of the Commissioner of Income-tax, West Bengal III, Calcutta, is as follows : "Whether, on a proper construction of Section 80J of the Income-tax Act, 1961, read with Rule 19A of the Income-tax Rules, 1962, the Tribunal was legally justified in holding that borrowed capital should be treated as part of the capital employed for computing the relief under Section 80J ?"
(2.) This question is now concluded by the decision of the Supreme Court in the case of Lohia Machines Ltd. v. Union of India [1985] 152 ITR 308. Following the said decision, we answer the question referred to this court by the Revenue in the negative and in favour of the Revenue,
(3.) The other question which has been referred to this court at the instance of the assessee is as follows : "Whether, on the facts and in the circumstances of the case and having regard to the scheme of the Act, the Tribunal was justified in law in sustaining the order of the Income-tax Officer and not allowing the claim of the assessee under Section 35C of the Income-tax Act, 1961 ?";