COMMISSIONER OF INCOME TAX Vs. SHALABH SHARMA

JUDGEMENT

(1.) THE Tribunal, at the instance of the CIT, Bhopal has referred the following question of law to this Court for its opinion, under s. 256(1) of the IT Act, 1961 (`the Act') :

(2.) THE facts giving rise to this reference as per the statement of case received may be stated in brief; thus, the respondent-assessee runs an ancillary industry for the BHEL, Bhopal and also carried on job work. During the asst. yr. 1975-76 the assessee claimed deduction under s. 80J of the Act amounting to Rs. 6,269. THE deduction so claimed by the assessee was worked not only on his own capital but also on the capital borrowed and the capital introduced after the first day of the relevant accounting year. THE ITO restricted the assessee's claim to a sum of Rs. 327 which was worked out at 6 per cent on the assessee's own capital of Rs. 5,456 which was employed in the business.

(3.) HENCE, this reference.