COMMISSIONER OF INCOME TAX Vs. HIMALYAN MAGNESITE LTD

JUDGEMENT

(1.) The Income-tax Appellate Tribunal, Delhi, at the instance of the Revenue has referred the following question of law under Section 256(2) of the Income-tax Act, 1961 (hereinafter referred to as "the Act") for the opinion of this court :

(2.) The facts giving rise to the present reference are as follows :

(3.) The assessment year 1981-82 is involved. The assessee-respondent is a company and it claimed deduction under Section 80J of the Act which was not allowed by the assessing authority as no production took place during the previous year relevant to the assessment year 1980-81. The only trial production took place in this relevant assessment year. The regular production had started only in June, 1981, i.e., during the subsequent assessment year. The claim was also not accepted by the Commissioner of Income-tax (Appeals). The Tribunal directed the Income-tax Officer to allow the deduction claimed under Section 80J, in case other conditions are satisfied.