ASIAN TECHS LTD. Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS petitioner has a grievance against rejection of the reference application by the order dt. 8th Nov., 1994 of the Tribunal (Ext. 9). The petitioner wants a direction for reference as regards the following 4 questions :

(2.) THE present proceedings of the petition relate to the deduction under ss. 80J and 80HH of the Act. Reading of the two statutory provisions would show manifold points of similarities which are conditions required to be complied to enable the assessee to claim deduction thereunder. There are certain special aspects of differences in the two provisions. Whereas s. 80HH relates to new industrial undertakings (in the context of the present proceedings), in the backward areas, s. 80J covers other areas not covered by the earlier provision. Obviously, as a result of this difference in situation the requirements show difference with regard to the percentages of deduction, period for which the deductions can be claimed and other aspects which can be understood as necessary differences arising out of legislative considerations dealing with different situations, although requirement of following certain conditions show an element of similarity in regard thereto. These general conditions are required to be fulfilled and it is only on and after satisfaction thereof there can be a thought of consideration of deduction thereunder. The conditions are available in s. 80HH (sub -s. 2) and s. 80J (sub -s. 4) of the Act. The first requirement is that the concerned industrial undertaking is not formed by splitting up or reconstruction of the business already in existence. The second condition is that it is not formed by a transfer to a new business of machinery or plant previously used for any purpose whatsoever. The third condition relates to the commencement of production and that is with reference to s. 80J of the Act as well as s. 80HH. It states that the commencement of manufacture or production of articles before the specified date as specified independently in the section requires satisfaction with reference to any particular industrial undertaking. The fourth condition is the requirement of employees with reference to the industrial undertaking and in regard to this specific number of employees find mention in the two provisions.

(3.) THEREFORE , the assessee invoking provisions of ss. 80J and 80HH of the Act has to satisfy compliance of the conditions generally specified hereinbefore.