Law:

Section:

Section 80J of the Income-tax Act, 1961 - Deductions - Profits and gains from new 'industrial undertaking', etc. - Whether borrowed money cannot be included in assessee's capital for working out deduction under section 80J - Held, yes FACTS The Tribunal held that the loans taken should not be excluded from the assessee's capital for working out deduction under section 80J. On reference : HELD In the case of this very assessee, the Supreme Court, in Lohia Machines Ltd. v. CIT[1985] 152 ITR 308, held that borrowed capital could not be taken into consideration and could not be included in the assessee's capital for working out the deduction provided under section 80J. Following the aforesaid decision the impugned order passed by the Tribunal was to be set aside. Note: Decision was in favour of revenue. CASE REVIEW Lohia Machines Ltd. v. CIT[1985] 152 ITR 308 (SC)followed and relied upon. CASES REFERRED TO Lohia Machines Ltd. v. CIT [1985] 152 ITR 308 (SC).…

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