COMMISSIONER OF INCOME TAX Vs. PRECISION FASTNERS LTD

JUDGEMENT

(1.) THE following two questions are referred to us under s. 256 (1) of the IT Act, 1961, at the instance of Revenue while question No. 3. is referred to us at the instant of the assessee. Now, these questions are at page No. 6 and 7 as under : 1. "whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the ITO should apply r. 19a and not r. 19 of the IT Rules for the purpose of determining the quantum of deficiency as is referred so in s. 80j (3) of the IT Act, which was the deficiency in the profits of the assessee company's industrial undertaking with regard to asst. yr. 1967-68, in relation to which s. 84 of the said Act was applicable ?"

(2.) "whether, on the facts and in the circumstances of the case and on a proper interpretation of the relevant IT Rules, the Tribunal was justified in holding that only debts and borrowed money which were due for repayment on the first day of the computation period and not those not due for repayment by that date, should be deducted by the ITO in computing the capital employed in the assessee's industrial undertaking ?"

(3.) "whether, the Tribunal erred in rejecting the assessee's claim that for computing the capital employed for the purpose of s. 80j of the IT Act, 1961, only the assets should be taken into account without deducting any liabilities ?"