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Section 80J of the Income-tax Act, 1961 - Deductions - Profits and gains from new industrial undertakings, hotels, etc. - Assessment year 1979-80 - Whether it is correct to say that where relief under section 80J in respect of new industrial undertaking has been allowed to assessee in initial assessment year, ITO is disentitled to refuse same relief in respect of that undertaking in subsequent assessment year - Held, no - Whether assessee would be disentitled for deduction under section 80J for subsequent year where conditions laid down in section 80J(4) have not been fulfilled in subsequent year - Held, yes CASES REFERRED TO M.M. Patel & Sons (P.) Ltd. v. ITO [1982] 1 ITD 82 (Nag.) and Saurashtra Cement & Chemical Industries Ltd. v. CIT [1981] 123 ITR 669/[1979] 2 Taxman 22 (Guj.). J.K. Singhi for the Applicant. A. Kasliwal for the Respondent. ORDER 1. On an application filed under section 256(1) of the Income-tax Act, 1961 ('the Act'), the Tribunal has referred the following question for the opinion of this Court : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that since the relief under section 80J of the Income-tax Act, 1961 in respect of the new industrial undertaking had been allowed to the assessee in the initial assessment year, the ITO was not entitled to refuse the same relief in respect of that undertaking in the subsequent assessment year unless the relief allowed for the initial year is withdrawn by the Income-tax Officer ?" 2. The assessee derives income from manufacture and sale of plastic and rubber goods. Relevant assessment year is 1979-80. Year ended on 31-12-1978. The income of the assessee was assessed at Rs. 20,411. The benefit of section 80J of the Act has been denied to the assessee on the ground that the assessee has not fulfilled the condition for deduction under section 80J. 3. In appeal before the AAC, the AAC has followed the decision of the Tribunal in the case of M.M. Patel & Sons (P.) Ltd. v. ITO [1982]1 ITD 82 (Nag.) and allowed the claim of the assessee. 4. In appeal before the Tribunal, the Tribunal has considered the decision of the Gujarat High Court in the…

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