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Section 80J of the Income-tax Act, 1961 - Deductions - Profits and gains from new industrial undertakings, etc. - Whether cost of plant and machinery under erection as also cost of building under construction are to be included in capital base for purposes of deduction under section 80J - Held, yes Section 32A of the Income-tax Act, 1961 - Investment allowance - Whether assessee was entitled to investment allowance in respect of amount paid as a result of fluctuation in exchange rate - Held, no Section 37(1) of the Income-tax Act, 1961 - Business expenditure - Allowability of - Whether since additional liability due to fluctuation in exchange rate was clearly referable to liability of capital nature, amount claimed by way of exchange loss, consequent to fluctuation in exchange rate, was not allowable as deduction - Held, yes CASES REFERRED TO CIT v. Cibatul Ltd. [1978] 115 ITR 879 (Guj.) [Para 2], CIT v. Gujarat State Fertiliser Co. Ltd. [1999] 240 ITR 536 / 105 Taxman 32 (Guj.) [Para 2], CIT v. Alcock Ashdown & Co. Ltd. [1997] 224 ITR 353/ 90 Taxman 521 (SC) [Para 2], CIT v. Karnataka Power Corpn. [2001] 247 ITR 268 (SC) [Para 2], CIT v. Windsor Foods Ltd. [1999] 235 ITR 249 /[1998] 99 Taxman 355 (Guj.) [Para 3] and Sutlej Cotton Mills Ltd. v. CIT [1979] 116 ITR 1 (SC) [Para 4]. B.B. Naik for the Applicant. Manish R. Bhatt for the Respondent. ts. JUDGMENT R.K. Abichandani, J. - The Tribunal, Ahmedabad Bench 'C' has referred the following questions for the opinion of this Court : R.A. No. 781 (Ahd.) of 1987 At the instance of the Commissioner : 1. Whether, the cost of plant and machinery under erection as also the cost of building under construction was to be included in the capital base for purposes of deduction under section 80J of the Income-tax Act, 1961 ? R.A. No. 782 (Ahd.) of 1987 At the instance of the Commissioner : 2. Whether, the assessee is entitled to investment allowance in respect of the amount paid as a result of the fluctuation in exchange rate ? R.A. No. 804 (Ahd.) of 1987 At the instance of the assessee : 3. Whether, the amount of Rs. 28,79,813 claimed by way of exchange loss consequent to the fluctuation in exchange rate was allowable as…

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