COMMISSIONER OF INCOME TAX Vs. TRIBENI TISSUES LTD

JUDGEMENT

(1.) BY consent of the parties the application being Matter No. 5592 of 1988 relating to the asst. yr. 1980-81 is treated as on the day's list and heard along with the application being Matter No.5588 of 1988 which relates to the asst. yr. 1979-80.

(2.) THE question in these cases in whether for the purpose of allowance under S. 80J of the IT Act, 1961 ('the Act') the capital of the new unit should be computed by reducing the capital employed with reference to the over all liabilities of the company as a whole or taking into account the liability of the industrial unit or which the capital employed was being computed.

(3.) IN the Revenue's appeal, the Tribunal found that for the asst. yr. 1978-79 the CIT (A) directed the AO to deviate from making abatement of the figure of the capital employed with reference to the overall liabilities of the assessee-company as a whole. Following its earlier order dt. 13th March, 1987, the Tribunal maintained the order of the CIT (A) on this issue.