| Case ID |
9bff0d68-c13b-4d74-a33d-a535ce09e025 |
| 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 court held that relief under section 80J of the Income-tax Act can be granted for the entire period of 12 months, regardless of the actual period of working by the new industrial undertaking. This decision was reached following the precedent set in the case of CIT v. Warner Hindustan Ltd. The court concluded that the question posed was answered in the affirmative and in favor of the assessee, thus providing clarity on the application of section 80J and ensuring that new industrial undertakings can benefit from the relief intended by the legislature. The court made no order as to costs, highlighting the favorable outcome for the taxpayer involved. |
| Summary |
This case revolves around the interpretation of section 80J of the Income-tax Act, 1961, which deals with deductions related to profits and gains from new industrial undertakings. The key question was whether the relief could be granted for a full twelve months, irrespective of the actual operational period of the new undertaking. The High Court's decision to allow such relief is significant as it ensures that new businesses are not penalized for being operational for less than a full year. This ruling is particularly beneficial for startups and new ventures seeking financial relief under the Income-tax Act. The court's reliance on previous decisions, specifically CIT v. Warner Hindustan Ltd., reinforces the judicial consistency in interpreting tax relief provisions. This case highlights the importance of supporting new enterprises within the economy and sets a precedent for similar cases in the future, making it a crucial reference point for tax law practitioners and businesses alike. |
| Court |
High Court
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| Entities Involved |
Not available
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| Judges |
RAGHUVIR,
RAMANUJULU NAIDU
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| Lawyers |
M. Suryanarayana Murthy,
S. Parvatharao
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| Petitioners |
Not available
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| Respondents |
Uni Sankyo Ltd.
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| Citations |
1987 SLD 2990,
(1987) 165 ITR 402
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| Other Citations |
CIT v. Warner Hindustan Ltd. (1987) 165 ITR 403 (AP)
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| Laws Involved |
Income-tax Act, 1961
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| Sections |
80J
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