COMMISSIONER OF INCOME TAX Vs. INDIA RADIATORS LIMITED

JUDGEMENT

(1.) IN pursuance of the direction given by this court in Tax Cases Nos. 94 and 95 of 1980 (Deputy Commr., Sales Tax, Appellate (Addl.) Bench, Coimbatore v.Tvl. INdia Roller Flour Mills) (sic) under section 256(2) of the INcome-tax Act, 1961, the Tribunal has referred the following questions for our opinion :

(2.) THE assessment years involved in these references are 1972-73 and 1973-74. THE assessee is a company engaged in the manufacture and sale of radiators. Apart from the main business of the company, there was a heavy duty radiator division. Separate balance-sheets for the said division were maintained. In the returns relating to the assessment years 1972-73 and 1973-74, the assessee claimed relief under section 80J in respect of its new unit. In doing so, it has computed the capital at Rs. 7,42,752 and Rs. 7,46,245, respectively, for the assessment years 1972-73 and 1973-74, by taking the cost of the fixed assets and deducting therefrom the current liabilities.

(3.) WE have also heard learned counsel appearing for the assessee who supported the contention put forward by learned standing counsel for the Department. However, learned counsel submitted that for the purpose of finding out the amount utilised by way of borrowed capital the matter should go back to the assessing authority.