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Commissioner Of Income-Tax v/s Kansal Hosiery Works

Company & Directors' Information:- J G HOSIERY PRIVATE LIMITED [Active] CIN = U18101TZ2001PTC009707

Company & Directors' Information:- K D S HOSIERY PRIVATE LIMITED [Active] CIN = U18101PB2001FTC024327

Company & Directors' Information:- R M H HOSIERY PRIVATE LIMITED [Active] CIN = U17125DL2007PTC167271

Company & Directors' Information:- P T M HOSIERY PVT LTD [Active] CIN = U52322WB1994PTC062394

Company & Directors' Information:- M G HOSIERY PRIVATE LIMITED [Active] CIN = U17124TZ2002PTC010195

Company & Directors' Information:- D D HOSIERY PVT LTD [Active] CIN = U18101WB1973PTC028694

Company & Directors' Information:- M. B. HOSIERY PRIVATE LIMITED [Active] CIN = U18101WB2008PTC125110

Company & Directors' Information:- R R HOSIERY PRIVATE LIMITED [Active] CIN = U18101MH1984PTC034394

Company & Directors' Information:- K K HOSIERY PRIVATE LIMITED [Active] CIN = U18204MH2014PTC251777

Company & Directors' Information:- B B HOSIERY PRIVATE LIMITED [Strike Off] CIN = U74999MH2015PTC267158

Company & Directors' Information:- M C S HOSIERY PRIVATE LIMITED [Strike Off] CIN = U51311WB2001PTC093781

Company & Directors' Information:- S P HOSIERY PVT LTD [Strike Off] CIN = U51311PB1985PTC006113

    Decided On, 21 February 1989

    At, High Court of Punjab and Haryana


    For the Appearing Parties: Ajay Mittal, Ashok Bhan, D.K. Gupta, Advocates.

Judgment Text

(1.) THE matter here relates to relief under Section 80j of the Income-tax Act, 1961, and it pertains to the assessment year 1975-76.

(2.) ON February 27, 1975, the assessee, Kansal Hosiery Works, started a branch under the name of Kansal Hosiery Mills, Ludhiana (Woollen Mill Unit). The question then arose whether relief under Section 80j of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), would be available to the assessee in respect of this new industrial undertaking for the whole year, when it was only during the last month of the accounting period that it was set up. The Income-tax Officer held otherwise and allowed the relief for only one month. On appeal, however, the relief was granted for the whole year. The Tribunal upheld the appellate order and this is what has led to the following question being referred to this court for its opinion : "whether, on the facts and in the circumstances of the case, the Tribunal erred in holding that despite the words 'per annum' used in Section 80j of the Income-tax Act, 1961, the assessee is entitled to deduction for a whole year under Section 80j for the woollen mill unit started under the name and style of Kansal Hosiery Mills, with effect from February 27, 1975?"

(3.) THE matter here stands settled by our decision in Income-tax Reference No. 140 of 1979 (CIT v. Bhushan Industrial Co. (P.) Ltd. [1989] 177 ITR 11), decided on November 16, 1988, and Circular No. 378 of March 3, 1984 (See [1984] 149 ITR (St.) 1), issued by the Board of Revenue mentioned therein, where it was held that such relief under Section 80j of the Act must be granted to the assessee for the whole year and not for part of the year only in proportion to which the machin

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ery was used. This reference has, therefore, to be answered accordingly, that is, in the negative, in favour of the assessee and against the Revenue. There will, however, be no order as to costs.