- (1.) THIS reference under Section 256 (1) of the Income-tax Act, 1961, at the instance of the Revenue is to decide the following question of law : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that, for the purposes of allowing deduction under Section 80J borrowed money should be treated as part and parcel of the capital employed in the new industrial undertaking ?"
(2.) THE relevant assessment year is 1975-76. THE only point for decision is covered by the decision of the Supreme Court in Lohia Machines Ltd. v. Union of India [1985] 152 ITR 308. Following that decision, this reference is to be answered in favour of the Revenue and against the assessee. Consequently, the reference is answered in favour of the Revenue and against the assessee by holding that the Tribunal was not justified in the view taken by it regarding grant of relief under Section 80 J of the Act. No costs.;