| Case ID |
1706e282-12c1-400e-a044-c4bf9b7a2724 |
| Body |
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| Case Number |
N/A |
| Decision Date |
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| Hearing Date |
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| Decision |
The court upheld the Tribunal's decision that the assessee was entitled to a relief of 6% of the capital employed in the new industrial undertaking under Section 80J of the Income-tax Act, 1961, despite the factory operating only for the last 175 days of the previous year relevant to the assessment year 1969-70. This decision was based on the interpretation of the law and referenced the precedent set in CIT v. Godrej Soaps (P.) Ltd. [1988] 169 ITR 537 (Bom.). The court concluded that the Tribunal's order should be upheld and provided no order as to costs. |
| Summary |
In the landmark case before the Bombay High Court, the interpretation of Section 80J of the Income-tax Act, 1961 was crucial. The case involved Carter Wallace Ltd., which sought a deduction for profits and gains of a new industrial undertaking for the assessment year 1969-70. The Tribunal had ruled that despite the factory operating for only 175 days, the company was eligible for a 6% relief on capital employed. This decision was contested by the Commissioner of Income Tax, leading to a reference to the High Court. The court, relying on precedents, particularly CIT v. Godrej Soaps (P.) Ltd., affirmed the Tribunal's decision, emphasizing the importance of equitable treatment for businesses contributing to economic growth. This ruling can impact future interpretations of tax relief provisions and set a precedent for similar cases, encouraging new industrial undertakings to invest and operate even for shorter periods. The decision is pivotal for tax law practitioners and businesses alike, as it clarifies the entitlements under Section 80J, fostering an environment conducive to industrial investment and growth. |
| Court |
Bombay High Court
|
| Entities Involved |
Commissioner of Income Tax,
Carter Wallace Ltd.
|
| Judges |
S.P. Bharucha,
T.D. Sugla
|
| Lawyers |
Dr. V. Balsubramanian,
N.A. Dalvi
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| Petitioners |
Commissioner of Income Tax
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| Respondents |
Carter Wallace Ltd.
|
| Citations |
1989 SLD 2432,
(1989) 177 ITR 349
|
| Other Citations |
CIT v. Godrej Soaps (P.) Ltd. [1988] 169 ITR 537 (Bom.)
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| Laws Involved |
Income-tax Act, 1961
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| Sections |
80J
|