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Section 80J of the Income-tax Act, 1961 - Deductions - Profits and gains from new Industrial undertaking, ships or hotels etc. - Assessment year 1973-74 - Assessee purchased cold storage plant, demolished part thereof and reconstructed same - Whether on facts, Tribunal was justified in holding that it was not a case of 'reconstruction' of business already in existence and that assessee was entitled to deduction under section 80J - Held, yes FACTS The assessee had purchased a cold storage plant, which included land, building and machinery. The assessee demolished a part of the cold storage plant. The construction was completed in March, 1971. The assessee made a claim for allowance under section 80J for the assessment year, namely, 1972-73, which was refused by the ITO by saying that the requirements of sub-section (4) of section 80J had not been fulfilled. However, the claim was ultimately allowed in appeal by the Tribunal. The view taken by the Tribunal was upheld by the High Court in CIT v. Shankar Cold Storage [1982] 138 ITR 286. For the assessment year 1973-74, also, the Tribunal relying upon the earlier decision for assessment year 1972-73 allowed the assessee's claim. On reference : HELD No distinguishing features were brought to notice on which a different view could be taken. Accordingly, the Tribunal was justified in holding that it was not a case of 'reconstruction' of a business already in existence and that the assessee was entitled to deduction under section 80J. Note : The case was decided in favour of the assessee. CASE REFERRED TO CIT v. Shankar Cold Storage [1982] 138 ITR 286 (All.). JUDGMENT R.K. Gulati, J.-This is a reference under section 256(1) of the Income-tax Act, 1961. The Income-tax Appellate Tribunal, Allahabad Bench, has referred the following question of law for the opinion of this court: "Whether, on the facts and circumstances of the case, the Tribunal was justified in holding that it is not a case of 'reconstruction' of a business already in existence and…

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