| Case ID |
5fa63787-baac-4f06-8061-60ce8256430c |
| Body |
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| Case Number |
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| Decision Date |
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| Hearing Date |
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| Decision |
The Tribunal justified granting relief under section 80J, as the necessary facts were established in favor of the assessee. The Income-tax Officer's initial denial was based on the absence of a separate factory building, which the AAC and Tribunal found exceeded the ITO's jurisdiction. It was determined that the new manufacturing unit met the conditions of section 80J(4) as the items produced were entirely new and distinct from previous offerings, new machinery was utilized, and fresh capital was deployed for the operation. |
| Summary |
This case revolves around the interpretation of section 80J of the Income-tax Act, 1961, which provides for deductions related to profits and gains from newly established industrial undertakings. The Karnataka High Court examined the claims of Metal Lamp Caps (P.) Ltd. regarding the manufacture of Goliath Screw Caps, a new product line distinct from their previous offerings. The court evaluated whether the Income-tax Officer's denial of benefits under section 80J was valid, given that the necessary conditions were met, including the verification of new machinery usage and fresh capital investment. The court ultimately ruled in favor of the petitioner, reinforcing the importance of adhering to statutory provisions while ensuring that the intent of tax relief for new industrial undertakings is honored. This case highlights the critical balance between regulatory compliance and the promotion of industrial growth in the economy. |
| Court |
Karnataka High Court
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| Entities Involved |
Metal Lamp Caps (P.) Ltd.
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| Judges |
K. Jagannatha Shetty,
S.A. Hakeem
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| Lawyers |
K. Srinivasan,
G. Sarangan
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| Petitioners |
Commissioner of Income Tax
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| Respondents |
Metal Lamp Caps (P.) Ltd.
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| Citations |
1987 SLD 2797 = (1987) 163 ITR 822
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| Other Citations |
Not available
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| Laws Involved |
Income-tax Act, 1961
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| Sections |
80J
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