- (1.) THE matter here concerns deduction under Section 80j of the Income-tax Act, 1961, in respect of the value of the assets under installation.
(2.) THE assessee claimed relief in the computation of capital for the purposes of relief under Section 80j of the Act in respect of the value of installations amounting to Rs. 14,05,380. The Tribunal, following the judgment in CIT v. Cibatul Ltd. [1978] 115 ITR 879 (Guj), and CIT v. Mohan Meakin Breweries Ltd. [1980] 122 ITR 203 (HP), accepted this claim of the assessee which has now resulted in the following question of law being referred for the opinion of this court : "whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the value of the assets under installation amounting to Rs. 14,05,380 should be included in the capital of the assessee for the purpose of granting deduction under Section 80j of the Income-tax Act, 1961 ?"
(3.) THE reference here has clearly to be answered in the affirmative and in favour of the assessee in view of the consistent view of various High Courts in favour of the assessee. Besides Cibatul Ltd. 's case [ 1978] 115 ITR 879 (Guj), and Mohan Meakin Breweries Ltd. 's case [1980] 122 ITR 203 (HP), a similar view has been taken in CIT v. Indian Oxygen Ltd. [1978] 113 ITR 109 (Cal) ; Ravi Machine Tools (P.) Ltd. v. C/t [1978] 114 ITR 459 (Kar) ; Periyar Chemicals Ltd. v. CIT [1986] 162 ITR 163 (Ker) ; CIT v. Union Carbide India Ltd. [1987] 165 ITR 546 (Cal) ; CIT v. Indian Smelting and Refining Co. Ltd. [1988] 169 ITR 562 (Bom) and C/t v. Southern Agrifurane Industries Ltd. [1988] 174 ITR 697 (Mad ).;