COMMISSIONER OF INCOME TAX Vs. MAYUR LAMINATORS

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal has referred the following question of law arising out of its order dated March 10, 1983, in respect of the assessment years 1979-80 and 1980-81 :

(2.) THE brief facts of the case are that the assessee is a registered firm and is a manufacturer of packing material particularly in bags of hessian cloth and D. W. tarpaulin mixed with bitumen, rayons, etc. During the course of assessment, it was found by the Income-tax Officer that the deduction which has been claimed under Section 80J(4) of the Income-tax Act, 1961, is not available to the assessee since the difference of the total cost of machinery is Rs. 1,62,275 and the old machinery for Rs. 57,066 have been purchased which exceeded the 20 per cent. of the limit prescribed under this section. It was also found by the Income-tax Officer that there should have been more than ten workers in the manufacturing process which condition is also not fulfilled as from the wage register it was found that during the month of January, 1978, to April, 1978, the number of workers employed on manufacturing process on all the working days was not 10 or more than 10. On both the points, the assessee was held not entitled to deduction under Section 80J of the Act.

(3.) EXPLANATIONS 1 and 2 read thus :