COMMISSIONER OF INCOME TAX Vs. KERALA BALERS LIMITED

JUDGEMENT

(1.) THE following question has been, at the instance of the Revenue, referred to us by the Income-tax Appellate Tribunal, Cochin Bench :

(2.) THE assessee is a public limited company carrying on the business in coir and coir products. A new industrial undertaking was set up by the assessee during the accounting year relevant to the assessment year 1968-69. This new undertaking did not earn any income during the assessment years 1968-69 to 1972-73 (both inclusive). Apart from the new industrial undertaking, the assessee also had other units of business. THE assessee-claimed the benefit of Section 80J of the Income-tax Act, 1961, in respect of the new industrial undertaking. This claim was quantified by the officer in the sums of Rs. 69,869, Rs. 75,815, Rs. 77,872, Rs. 77,915 and Rs. 11,680, respectively, for the years 1968-69 to 1972-73. However, in the absence of any profit from the new industrial undertaking, the "deficiency" had to be carried forward as required in terms of Section 80J(3). In respect of the new industrial undertaking, development rebate was claimed and allowed for the assessment years 1968-69 to 1970-71 aggregating to Rs. 1,14,297. This sum, for want of sufficient profit to be set off, was carried forward.

(3.) WE direct the parties to bear their respective costs in this tax referred case.