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Section 80J of the Income-tax Act, 1961 - Deductions - Profits and gains from new industrial undertakings, ships or hotels etc. - Assessment year 1976-77 - Whether deduction under section 80J is admissible for entire accounting year even though undertaking of assessee has actually worked for only a part of accounting year - Held, yes FACTS The assessee-company was carrying on the business of bottling and selling soft drinks. During the relevant assessment year the assessee installed a barge on 29-3-1976. The assessee claimed deduction under section 80J. The ITO allowed the claim for a period of three days only and rejected the claim of the assessee for deduction at the rate of 6 per cent per annum for the entire accounting year. On appeal, the claim of the assessee in that behalf was allowed. The Tribunal upheld the order of the Commissioner (Appeals). On reference : HELD In view of the decision in CIT v. Sanghi Beverages (P.) Ltd. [1982] 134 ITR 623 (MP), the Tribunal was justified in upholding the decision of the Commissioner (Appeals), allowing the deduction under section 80J to the assessee at the rate of 6 per cent per annum for the entire accounting year. Note: The case was decided in favour of the assessee. CASE REVIEW CIT v. Sanghi Beverages (P.) Ltd. [1982] 134 ITR 623 (MP) followed and relied upon. CASES REFERRED TO CIT v. Sanghi Beverages (P.) Ltd. [1982] 134 ITR 623 (MP). R.C. Mukati for the Applicant. Chaphekar for the Respondent. JUDGMENT Sohani, J. - By this reference under section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), the Income-tax Appellate Tribunal, Indore Bench, Indore, has referred the following question of law to this court for its opinion: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in upholding the decision of the Commissioner of Income-tax (Appeals) allowing deduction under section 80J of the Act to the assessee at the rate of 6% per annum for the entire accounting year?" The material facts giving rise to this reference, as set out in the statement of the case, are briefly, as follows: The assessee is a private limited company carrying on the…

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