Commissioner of Income Tax vs Metal Forging (P.) Ltd.

At the instance of the Revenue, the following question has been referred for the opinion of this court u/s 256(1) of the Income Tax Act, 1961 (in short "the Act"), by the Income Tax Appellate Tribunal, Delhi Bench D (in short "the Tribunal") :

"Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in not directing the Income Tax Officer to work out the deduction u/s 80J in accordance with said section as amended by Section 17 of the Finance (No. 2) Act, 1980 ?"

The dispute relates to the assessment year 1974-75 and while dealing with the question of deduction in terms of Section 80J of the Act, the Tribunal referred to its earlier decision in the assessed''s own case for the assessment year 1973-74 and granted the relief.

In CIT v. Metal Forging (P.) Ltd. (I. T. R. No. 211 of 1983) one of the questions related to the application of Section 80J. Following the views expressed by the apex court in Lohia Machines Ltd. and Another Vs. Union of India (UOI) and Others, and in view of the decision of this court, which we have given in I. T. R. No. 211 of 1983, the answer to the question referred is in the negative, in favor of the Revenue and against the assessed.