COMMISSIONER OF INCOME TAX Vs. ALAGAPPAN P R

JUDGEMENT

(1.) AT the instance of the Revenue, the following question has been referred to this court for opinion under section 256(1) of the Income-tax Act, 1961 :

(2.) THE assessee who is a chemical engineer by profession has his only source of income from a business carried on in the Industrial Estate under the self-employment scheme. For the assessment year 1973-74, he had returned an income of Rs. 20,184 against which he claimed unabsorbed depreciation and development allowance of earlier years of Rs. 5,163 as well as relief under section 80J of the Income-tax Act, 1961 (hereinafter referred to as the "Act"), to the extent of Rs. 15,869. THE Income-tax Officer did not allow the relief under section 80J as, according to him, the assessee did not satisfy the condition laid down in section 80J as he could not be considered to be a worker employed in the undertaking as contemplated by section 80J(4)(iv) of the Act.

(3.) IT is not in dispute that in so far as this case is concerned, the relevant statutory provision is in clause (iv) of section 80J(4) of the Act. The relevant part of section 80J(4) reads as follows :