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

At the instance of the revenue, following question has been referred for opinion of this court u/s 256(1) of the Income Tax Act. 1961 (hereinafter referred to as ''the Act'') by the Tribunal, Delhi Bench ''D'' :

"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 out the deduction u/s 80J of the Income Tax Act, 1961 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. (IT Reference No. 211 of 1983), one of the questions related to application of section 80J. Following the view 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 IT Reference No. 211 of 1983, the answer to the question referred is in the negative, in favor of the revenue and against the assessed.

Reference is disposed of accordingly.