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1 - 10 of 71 (0.59 seconds)The Income Tax Act, 1961
Section 84 in The Income Tax Act, 1961 [Entire Act]
Section 84 in Income Tax Rules, 1962 [Entire Act]
Article 14 in Constitution of India [Constitution]
Section 2 in The Income Tax Act, 1961 [Entire Act]
Income Tax Rules, 1962
The Companies (Profits) Surtax Act, 1964
Century Enka Ltd. vs Income-Tax Officer, Central Circle And ... on 18 March, 1982
As observed by a learned single judge of the Calcutta High Court in Century
Enka Ltd. v. ITO, the main consideration upon which this question has to be
resolved is (p. 132), whether having regard to the purpose for which
provisions of s. 80J of the Act was introduced, it was the legislative
intent to restrict the capital employed in any manner so as to limit it to
the first day of the computation period. So far as s. 80J is concerned, it
does not give any such indication. That apart, such computation of capital
employed in an industrial undertaking would defeat the very purpose of the
undertaking and would lead to incongruous and anomalous results. While an
assessee who has employed capital in an industrial undertaking on the very
first day but has withdrawn it for the major part of the year would be
entitled to the full benefit, an assessee who has not employed the capital
on the first day but has employed it during the major part of the previous
year would be deprived of the benefit. If the intendment of the Act is to
give tax holiday for the new industrial undertaking with a view to help
them find their roots and encourage entrepreneurs to establish new
industrial undertakings and pave the way for rapid industrial growth in the
country, then that purpose would be not served. In fact, it would be
defeated if the capital employed is computed with reference to the first
day of the computation period and not in respect of the previous year
relevant to the assessment year.