Commissioner of Income Tax vs Road Master Industries of India (P.) Ltd.

S.S. Sodhi, J.—The question of law referred for the opinion of this court is as under :

"Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal erred in law in confirming the order of the Appellate Assistant Commissioner of Income Tax holding that deduction allowed u/s 80J falling under Chapter VIA of the Income Tax Act could not be considered as a sum not includible in the total income for Income Tax assessment and, therefore, would not fall for deduction under rule 4 of the Second Schedule to the Companies (Profits) Surtax Act, 1964, for computing the capital employed ?"

This precise question arose before this court in Income Tax References Nos. 39 to 41 of 1979 Commissioner of Income Tax Vs. Oswal Woollen Mills Ltd., , decided on November 17, 1988, and is also covered by the earlier judgment of the High Court of Calcutta in Commissioner of Income Tax Vs. Peico Electronics and Electricals (Formerly Philips India Ltd.), . The reference is, accordingly, answered in the negative, in favour of the assessee and against the Revenue. There will be no order as to costs.