Commissioner of Income Tax vs Gopi Chand Textile Mills Ltd.

S.S. Sodhi, J.—The matter here concerns deduction u/s 80J of the Income Tax Act, 1961, in respect of the value of the assets under installation.

The assessee claimed relief in the computation of capital for the purposes of relief u/s 80J of the Act in respect of the value of installations amounting to Rs. 14,05,380. The Tribunal, following the judgment in Commissioner of Income Tax, Gujarat-II Vs. Cibatul Ltd., , and Commissioner of Income Tax Vs. Mohan Meakin Breweries Ltd., , 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 u/s 80J of the Income Tax Act, 1961 ?"

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 Commissioner of Income Tax, Gujarat-II Vs. Cibatul Ltd., , and Commissioner of Income Tax Vs. Mohan Meakin Breweries Ltd., , a similar view has been taken in Commissioner of Income Tax Vs. Indian Oxygen Ltd., ; Ravi Machine Tools (P.) Ltd. Vs. Commissioner of Income Tax, ; Periyar Chemicals Ltd. Vs. Commissioner of Income Tax, ; Commissioner of Income Tax Vs. Union Carbide India Ltd., ; CIT v. Indian Smelting and Refining Co. Ltd. [1988] 169 ITR 562 and C/T v. Southern Agrifurane Industries Ltd. [1988] 174 ITR 697 .

The reference is disposed of accordingly. There will, however, be no order as to costs.