Law:

Section:

Section 80J of the income-tax act, 1961-Deductions-Profits and gains from new industrial undertakings-Assessment year 1972-73-Assessee-company claimed deduction under section 80J of Rs. 1,38,190 (Rs. 51,389 for assessment year 1972-73 and balance for three earlier assessment years 1969-70 to 1971-72)-ITO and AAC allowed only Rs. 51,389, holding, inter alia, that relief for earlier years had not been quantified-Tribunal directed grant of entire relief subject to verification of details-Whether tribunal right in law-Held, yes Facts For the assessment year 1972-73, the assessee-company was engaged in the business of manufacture and sale of insulaters for electric industries. It commenced production in 1968. During the assessment year 1972-73, it claimed relief under section 80J for Rs. 1,38,190, including Rs. 51,389 for that year and the balance for the three earlier assessment years 1969-70 to 1971-72. The ITO allowed only an amount of Rs. 51,389 and disallowed the balance on the ground that necessary particulars had not been furnished and that the quantum of relief for earlier three years had not been quantified. The AAC confirmed the ITO's order. On further appeal, the Tribunal, however, held that there was nothing in section 80J which required the assessee to get the quantum of deduction quantified in the relevant assessment years and that there was no bar if such particulars were made available in the course of the assessment proceeding of the year in which there was enough profit enabling the allowance of the deduction for that year and earlier years. Consequently, the Tribunal directed the ITO to grant the entire relief of Rs. 1,38,190 after verifying the correctness of details furnished. On reference: Held 1. Unlike section 34( 1), there is no statutory obligation on the part of the assessee under section 80J to furnish the necessary particulars in initial year in which the industrial undertaking was set up for claiming relief under the latter section. Section 80J provides that no loss, which has not been determined in pursuance of a return filed under section 139, shall be carried forward and set off under section 72( 1) or 73(2) or 74(1) or 74A(3 ).…

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