Madhya Pradesh Court January 1988 Judgments

Glass Fibre Textiles Vs. Commissioner of Income-tax

Court: Madhya Pradesh

Reported in: [1988]170ITR453(MP)

N.D. Ojha, C.J.1. The Income-tax Appellate Tribunal, Indore Bench, Indore, has referred the following question to this court for its opinion under Section 256(1) of the Income-tax Act, 1961, hereinafter referred to as 'the Act' :'Whether, on the facts and in the circumstances of the case, on the formation of this assessee-firm by Shri Vinod Sonpar and by bringing his assets and liabilities by way of his own capital in this assessee-firm, the Tribunal was correct in law in holding that the assessee's claim was hit by Section 80J(4)(ii) and, therefore, the assessee was not entitled to deduction under Section 80J at Rs. 12,560 ?'2. The matter related to the assessment year 1975-76. The assessee is a registered firm deriving income from manufacture of fibreglass which was supplied to the Bharat Heavy Electricals Ltd., Bhopal. For the assessment year in question, the assessee claimed deduction of a certain amount under Section 80J of the Act. A similar deduction had been claimed in the asse...