Commissioner Of Income Tax, Patiala v. Patiala Flour Mills Co. Pvt. Ltd., Patiala

MART MAT, Tear Tata afemar qenre fae aeadt sreae fafaes, afearer(The Commissioner of Income Tax, Patiala“ The Patiala Flour Mills Co. Pvt. Led, Patiala)|(6 xetax, 1978) (roratbente a. or. wa, aT. St. TUTTAT :ara-at aftutamr, 1961 (1961 at43)—uret.SOx—sa aT S Tae S faa ae ataltrs semant wx atv at aroraoafefor a sera aatt get Ota SF at orem fora Aha a srt IAT BT& ermed ae Ser ST aUTT HCA H Fey eat set FtPaatfadi-scret® ater seare H aTeaTe aTaT aT Poagrave (ales welt) eae aT HTeaTe AT aTHare FastPrac af 1967-68 & sare setae H enfor fear eT aTae ue Ta HathSrA at Pee aTaAeatafaay, 1961eer 90-1 at wearer (4) arr att oft1 Pretfedtat Prateratt 1967-68, 1968-69 aie 1969-70 & ater alaraTe FAT ABITTE A AYE TTT Tat gat, PR qt prcareyATT EAT UTaie ae fautor amt & Pau faruifedt at ae ot met ae ae atsoa Ha H Mate aia At svat alfa, TaeaH ATpaarePeae at ae areaat gu arr age aaate Paarcotar1aansue at avae alg afta ate qaeay ATH ATPasa Pode at mle rr sarafaa adh war Paae ae Prater aot1970-71#& aad ate wae Peat wet1 MAT Fa mwaA wey ae at owaerqy winate forefere[¥] tt& cea Preferat 1970-71 # 1,51,011Peds wa atara gat1Paethedt + Prete af 1970-71 & fau aay axa Preto a erat feat far are 80-9 & att saat (aah) a# 1,51,011 wa & cn wedgerfea at ot gat 2“ta Praicr at 1967-68, 1968-69 atx 1969-70 * afteras& Mt Te wars wir TS get TV gar aT Tare et, satan Cae Cot weaae wT ge es aavatad aa x as wt gee ekva Prater aut" wt ote a Paw saat (at) att at ax waare 80-9 at seer (3) & aete Prater at 1970-71 aa antaie ae autre aa tet1 fruferat 1967-68, 1968-69 ax1969-70 & fay rar (at) at eee 11,155 wt 1,14,153wrtae sh Hi ahr 90,228 we wewrt ait Cot at1 faater waaaftHe 1970-71 83,391 & wereace A oa |Preitadt @ evar frat fee 83,391 ead at ag cen,St Preferav 1970-71ware TE Cot at GATT CH al sone Heel a,wre 80-5 at scare (1)& oer aan& arate F eat1,51,011 we & ant wee aoe at oT aad & ate Tei aHTT ary ae uraer g, Powe Prefer at"Fh Paw sear (ent) awat, watt, 11,155 wa,1,14,153 wi wk 90,228©wrt,at ot Praterasf 1970-71 at aaiteat we ot, art 80-7arentsqere aera (3) & wetyFt Prefer sehaf weet 1970-71 aurea¥ st ams at we gaat cat oft at|TaTT Tar h aiaHst at Posed Prefer aay a& faa saat (wat)at cerat ox Prave vet foot, fart we afefreatter Peet farPrefer as 1970-71 a atarme dda # aieare J Me era setgat or, Tee age Prarer ae 1970-71& cho wane asTo at ere Ta eT aT BO-or at STITT (1) B ate TATAFeat ar qeat at foot Prater ané & few saat (at) aiarte Bl re Tal wm Paet wer at ere 8O-a st seera (3) F 234yaaa waTargfaora ofaat wet creteet aT eendt1 PreafPedt at ge arFf eaeqa ghwet ot Pes share aaaoreate & Prefer a 1970-71¥1,51,011 wea or are gar ot aie aera F ug ara Paat warot Pa Preitedt at ax & yard wer ae at aaaH ant at walTae TTT A at TT eal ot, Peat arene aferceret J we aTATATfe ert 80-3 at stare (1) ate (3)F Brae aT ae Fsas & Pare aATTe eaeaTe a TT at eA A Power Parehcoraor th Pat Se exert al aaa athrat aie Hee ger PaereT|Pete ar at 1,51,011 wa & are ae warifeataifeu, aaifesPrat fraicor am a se area a até wt arwet gat ar Poa wee Tet atta, eaeatm a Pacpre feaeat anita Paar ot wat1 frattedd& eer arer (ait)a ane ailt aim ataat afara Potrero at aaict at,fret were aed (atte) Fadl ae ATAAK atte aleTatat 1 ge ae Prathadt § areet Ho art ote at ate ater &ater a afutretfea feat fo ata fost Prat att &faq atarme & arcane al aaa athral ate eaeAH TUTfara Pete ar aaaaay areary & ant wee cect gt Hxfeat wat ut, setae cet aifaet, waar ate ot face Pracar als wt art aarafeoe wer war faod fa se aaa Paar a7wah ate freer af 1970-71 & Pfau ant wee Ase PHar aTwh aie gata aharme areaTe FH 1,51,011 wa a aeGa Patt wore are weit aét at or waadt at ate Prottadt agarat chUt HT BHAwT fH we ant F F vat 83,391 ea arcre at petit at ore ot odaad & chee amg we Tot atwae THs tay Tene HET s ate fae fos fraiey qa a fay(at) at coat at aetet at amet ahracr am ee a aeforr ata & aree carer fount F frat a Paw atten Perr atesiaen Pew ora oe Pater ar faeafafee ser Sea VToTAT al wTa Pau faa far Peat Tay: 1128 A COMMISSIONER OF INCOME TAX, PATIALA PATIALA FLOUR MILLS CO. f?T. LTD., PATIALA · October 6, 19~s· [P. N. BHAGWATI, V. D. TULZAPURKAR AND R. S. PATHAK; JJ.] B lncon1e Tax Act, 1961, Section 80 J-Interpretation of. The Respondent·assessee claimed in its assessment to tax for the assessment year 1970-71 that the amounts of deficiency under Sec. SOJ for the current as \Vell as past assessment years were liable to be adjusted ngainst the profit of Rs. 1,51,011/- earned by its cold storage plant which was a new industrial c undertaking to which sub-section ( 4) of Sec. 80J of the Income Tax Act applied. The assessee did not make any profit in the business of cold storage plant during the assessment years 1967-68, 1968-69 and 1969-70, but there was profit in the other businesses and the losses, depreciation allO'wance and development rebate in respect of the cold storage plant were adjusted against the profit from the other businesses in computing the total income of the assessee chargeable to ta.x for those assessment years. The Income Tax Officer and in appeal the D Appellate Assistant Commissioner rejected the claim of the assessee for adjust-ment. But in further appeal the Tribunal held that since the losses as well as depreciation allowance and development rebate in respect of the cold storage business for the past assessment years were already adjusted against the profit from other businesses, no part of such losses, depreciation allowance or deve-lopment rebate remained unabsorbed so as to be carried forward and set off against the profit for the assessment year 1970-71 and hence the prQ:fit of E Rs. 1,51,011 /· from the cold storage business woo not liable to be reduced by any such set off and the assessee was entitled to claim that from out of such profit there should be deducted, first, the amount of Rs. 83,891/- representing the relevant amount of capital employed during the previous year .and then the amounts of deficiency for the past assessment years. The High Court on a reference, a-t the instance of the Revenue answered the question in favour F of the assessee. Dismissing the appeal by special leave the Court, HELD : (I) The proper construction of sub-section (I) of Sec. 80J must, be taken to be that the profits or gains of the new industrial undertaking must be computed in accordance with the provisions Of the Act in the same manner as they would be in determining the total income chargeable to tax G and it must follow a fortiori that if the tosses, depreciation allowance and development rebate in respect of the new industrial undertaking for the. past assessn1ent years have been fully set off against the profit of the assessee from other business or for the matter of that, against the income of the assessee under any other head by reason of sections 70 and 71 read with sub-section (2) of Sec. 32 and sub-section (2) of Sec. 32A, no part of mch losses, depreciation allowance or development rebate would be liable to be adjusted over H again in computing the profits or gains of the new industrial undertaking for applying the provision contained in sub-sectiott (I) of Sec. 80J. The same mode of comput~tion must prevail also in applying the provision containea in Cor arma # qeal BH arere ae ae Tay oPe-Perfoal& atte afecncr art arrant afufaar, 1961 SSNS 42 at oer 80-3 & aelter pete emt arse Pome ST Pater[&]Hare Tet go ger aeras a ateaer & aa @ agate were at aT BA RTer Sez faulPedl & ger A ate ued fowra & foes ¢ TaeeT!oz ames faut Fee ervey @ Paate cose Aa HeTT TTTar.atta ateraed ex, atubsetter—arrne atetaar,1961 #f are 80-5at grove (1) at arat & ag ease @ fa ay ater soeant ut etwanr, Para & fadt Prater af am cher we 7gst at eeart car Se ora & ache orcas at oT Tart Z,ee a wart wer ary at arom eet H efeafas faq sot ateamsatan upetwar21 gafamac a ast eer TT frarat 4aft at, SE& fou ore datos 80-4 au at atenh seare Sor(1) F aH Grae TTaTl HTM ATT HEF FEPau ar ot afweant AMAT ISAT| mer 80-7 at sree (1Bre aes aT airs THT SH AMT AT APABT ATT =aon adr &, foot & un ae at caret jer ae aT SATBAT& far at ete UT Ge STUTeT H Trae HY ary HEA FHT STera 80-% at soarer (1) a aver ene ak fateaa g ak oeae aa & dae vet wea Pa se Sree aH srafers Hels HTATaya sciet # Pau av atealfrs woee F amt or afwanr Faoe ser Ota & at anit 2, aad Seat roa aT A TEwer are eer aaere et A at ort ate fore Paarertiy freeast & tot an ve colt at wate woe at tet ar aT aia F& weit at art &1 are 8O-a at Terr (1) aa PahserFan au stefan sar Ah aret or aterarat a Sera Ee TaA seit at aat aeittrs sre Pauffadt ar seh earer 4aT at feat Prater oatas fem 4arte[&,][ waar][ area]sentir srer at aaa etaat, sara ara ut fare Peaay oer angered & arr nee wore wet Paar aT g|gataat sree (1) at aataa sata aet Pra ar err30-1 23600Seaeta ataTeyfaery ofzat[1979] 4 Ho fio qoater far aw atenfaer Soe bart at afrendtetafirnst eosOe & sort & sear get Gf & at anit safer faa & ae a art ae ary at sae ae A at TOMA at,MTR, AT TTT we x fer ate aT atten sosee at aeqPract Prater oat & far arti, wary ate a faa fedeTT oer arent & Prathadt & apr age gut eet nor ax featTa § UT ata 70 we 71, etse ene 32 at srr (2) wkITTsetiiedt 32-eeT Sree (2), a atare | fenelt arer afist eo oretyPray, at ora age qf er & arr ae Peat wat eat batatsaree ate op Pacers Pea ar alg oft amr eter 80-a STITT (1) & syareif ot aL at H Paw we wets gonePantUT at sfvrene at deoay are a ay Pet a aanifes eatfatSTOTTWT 80-4 at seer (3) B sree BT any aes30-3 arora ar ae ST ay eh, aaa we opera = arawe ar sree(1) # Pater ani ax afrant & ste, STH ort ge ae anit é eerae ge gem &rat at Saray (ail) at ater cer at are fine one aq ar.ry € Ate wefau afe ere 80-5 at sera (1) & sdter &ae ay wtelfrs sre a anit ar afwend at duos apeTHatoat erat, PaatH Grail & arr aaerry arcane TTA aate ar at ot ont i Pape ofa arate Pete Rat fred & aver Prefer Peet ate arr ar, & at ate &TH & oft coer eq § FST et Pat war g, aw aenfras gooseerat aT afeernit at aarrar aret & fee & easier wat fareT eehaT, at seit sere ear 80-7 aA see (3) & sraser aayRL wet H at Cer as waiterwaster wat ata(fa 2)oat Pats wet16/74eae steer gemTaeTee Paterwe arte gore aa«28 wee, at af adhe 1976 aa| Paulsak mae eSmiratate8Bat dre to mifta,ft dto atoWee WIT FANTwo Farfedty rrrrrrr LESS’:cccrrrrrrr area aay Troe eararberafe dy. GT. wradt t fect|“FarnteraterPrefedt, enactst smeae| fafats arn|Tg, wie yar FBRA FeTaT oT feet ater (ates tte) sie ag HILSTRHatiAten aaa Prefor ae 1967-68 @ waneder ast xerted fae wat ar ate ag war ates soma oy Pat areafefamy, 1961 at err 80-a at seer (4) arr att ot1teuitedt at Prater af 1967-68, 1968-69 at< 1969-70 &ther ttarne etie e areare & att apr at get, far aneerat & any gat or ate or Prater ait & fae fruihotar ae tt mare ape arr att aeroray act A attarere sees at ares ‘vavo [1979]43H fo Fo 238 waada wataterafoie ofa sub-section (3) of sec. 801, because that sub-section provide.;; for setting off the ca-rried-forward amount of deficiency· of the past assessment years against "the profits and gains referred to in sub-section 1" or Sec. 801, as computed. after allowing inter alia the deduction admissible under sub-section and, there-fore, if, for the purpose of sub-section (1) of Sec. 801, the profits or gainJ of the new industrial undertaking are to be computed in accordance with the provi-sions of the Act and no part of the losses, depreciation allowa·nce or develop-ment rebate for the past assessment years which has been fully set off against the prdfit from other businesses or income under any other head is liable to be adjusted over agian in computing the profits or gains of the ilCW industrial under-taking, no such adjustment would equally be permissible in applying the provi-sion contained in sub-sl!ct.ion (3) of Section 801. [1136 D-H, 1137-i\] (2) It is clear from the language of sub-section (I) of Section 80J that the profits or gains of a new industrial undertaking from which deduction of the relevant amount of capital employed during a particular '.lssessment year is allowaible under that provision, are the profits or gains includible in the computa-tion of the total income chargeable to tax. Therefore, whatever be the profits of""'gains of the new industrial undertaking computed for the purpose of arnviiij: at the total income chargeable to tax, would have to be taken to be the profits or gains for applying the provision contained in sub-section ( l) of Section 80). [1135 0-E] (3) There are no two modes of computation Of the protits or gains of the new industrial undertaking contemplated by sub-section (1) of Sec. 801, one for determining the total income chargeable to tax and the other for applying the provision contained in that sub-section. The language of sub-section ( 1) of Section 80} is clear a11d explicit and leaves no doubt that the profits or gains of the new industrial undertaking for the purpose of allowing the deduc-tion provided in that sub-section, have to be computed in the same manner in \Vhich they would be in determining the total income chargeable to tax and a deduction has then to be made from such profits or gaini:;, of the relevant a.mount of capital employed during the as..o;;essment year in question. lt cannot be held by any process of construction, even by turning and twisting the language of sub~section ( 1) of Sec. 80J that for the purpose of allowing the deduction contemplated under that section the profits or gains of the ne'v industrial undertaking must be computed in a manner ditlerent from that In which they would be computed in determining the total income chargeable to tax. Sub-section ( 1) of Section 801 does not create ai legal fiction that for the purpose of applying the provision contained in that sub-section, the profits or gains of the new industrial undertaking shall be computed as if the new industrial undertaking were the only business of the· assc3.See Tight trorn the date of its establishment or the losses, depreciation allowance or_ development rebate in respect of the new industrial undertaking for the past assessment }'tars were not set off against the profit from other businesses. If the construc-tion of sub-section (I) of Sec. 80J contended for and on behalf of the Revenue were accepted, it would lead to the absurd result that there would be two species of profit'i or gains of the new industrial undertaking, one for inclusion, in the total income chargeable to tax and the other for detennining the ava·il-ability of the deduction under sub-section (l ) of Section SOJ. That would be plainly contrary to the express language of sub-section (I) of Section 80J. [1135 E-H, 1136 A-0] ·::::ea·· Ji30 SUPREME COURT REPORTS [1979] 1 s.c.R. CIVIL APPELLATE JURISDICTJON : Civil Appeal No. 2395 of 1977. wad wares Peat Tet aT|ater daaoatated aE‘ataaay xer ae fora aaxam ag Praterate at af fear 1970-71 fede at %ate errwate fae arated satare aoe Paar rat1 alarare eee BH BTTATR aT TRENafoars & TEAWAT Tae AIR Ba TT aS aT eaeHTHae Pacore fede at feara A aa as gear, Freier ae 1970-71# 1,51,011wa a at wT|feattedt + Prater a1970-71 & Pau aad awe aH Proteoy H arar Pree far eer 80-5# adie gaat (at) at wee are at ate fred fretaah@farwdtva frferata 1,51,011 wa e wT Waaeraat at wated 1ha star omer 80-a oe aTaTRT g,sofau aq Ver WX BATT F ware Trae AT Tees LATafauera we1 afataae F ere 80-7 faaparaae ,ooreer 80-9 ar am aitern8 & wrt eed Parifefad ST ae 1968 TB & xat Te eitge ate“Oo.s(1). te are ak sai afar Prat Preffadt aterfad at T, ener wT per Paet Teerataati any SHA ait 2, UT aaeet Na at &, lea set Hh Prathedt araTe aT, at Pre ae oraaeautue aa wat anit aie ahve FF (at F ATT.areQ0-amy& ait faulat aiaed aecifoutat, atsaie at, aeuitr Ger STsat sevHT w ATT)at. HT weltR ITT ay SH STAT H HLTpeat faaat tanaorof at at aaaaT STATfatedfafaa aufua,onfetave weifrs soaTstaredea gers sats TETs THT Be(ciesuta at at ac a ofeataa car at aera ae éqf av &ware ater & ofeatad ame Te Tot war at eed aeaT Tee, Tar ee FST ATT AST AIT Fo Yfeatat qite fare [Tato aaat}] a,(2) scared (1) # fafateteaettt, oe od a Poet welfirs soar secs a fatante ot gereta Wet Tet are arr A Ara Tet & aT glee aT BIAares ata &, Hare Prater at at (Pre Prato afel fh TAT. BT aTFT arfars Prater ad F ey+ Patatee fro war @) aar arefarn Prater ad & atsata ah are Prefer awl a a at wn at aad ae aT Glew Harare & arat anit ae afeenil at caer, Walt1967 art Prater & ata & at sere & far (ft fa st ar ortare sash Prefer TR asMIRArqe ar ar antere Prefer at & ar t ae afore wiePrater asf a crate, ar Prefer ae adt a) aaa ofat al aaa ar arr a (fet fa az are 64 & yranilat ary faq feat ate wear 6-% aT arr 280-0 &ate arg mek act & ot antares 8) afeafad at wf@, Ta av & atom wg we Co at aeeae a aeost & vet Cet att at car, oT wet te ate ant aksfrareat & set of ad & chow amg we Got AaaTt «Tay mH aca cae (et car,at artBIH TRATT FT ITA H, HeaH wT A Pafacce at wé)wodte at amet ate sta armeit freer af & wereqe ae at ara soerer (1) a fatacce anit ate afir-art a oat (st Por Serer 80-95 ate var STITT (1)wet sratProfrast tsa Pag anit ate ate afvenit td am ak & afers afvanr aet 2 atfeat, eept gaat oot aed afeaty at de arent de arent arent2 ast, qe- Seaae atareyfava feat Prefer ae & Pau te anil ate afvert & ofa wereque: wr oat at aT wart, at st ae ametPree at a fae ate get sere art w& Pau Profe teanit aie afwert & ofa wer feat ste (1) fadt at aera, srar ar vent at werarteProrata sere ceatier aaatrey at & amt arate wer Paar wren, tet aarat(2) vet Peer PreferHt ates af a aaferr ora ga g, RG aal aegrat Ht ota Prefer oad a araferrg, Patweataadt Prefer at & aferSaat aT AITatt t Ta Se STMT H eT AT AT TTT| (4) ae are Patt we sentresoar at airant € ot faeafated al aah at of acat 2, water,(1)ae veta faantsfadt arentay .(2) ag fant miter & Pag aapt soarAATBT AAT BT AT HIT Hl Hay HH setwat z, (3) ae area & Panett wer a secret at Fafe-afy ur SeateatStar SOT Ue aT em a afea:1948 & ate & sere fea & ote arratte aotat aravater ar vat oafafeaa arerafer # aeaz,fod date cone aerate uses toafeesara fafafate at, aecet ar Pafaaty er geared ur WAST AIR Fo Tfeatet WAT fares fiuto wTadt] Ot aay at daa arOT AIRAT TATAT ATLAT HT west 2 AAT z, (4) ve amr fat ateitessamfer at aera & ware wrt ave fataator qPenaY aq ar afer aaefeare faattor aeat & seatater at werrat & Paar wears srt atet fafantorstaat H die at aPeren afenre Prater seat 2 Appeal by Special Leave from the Judgment and Order dated 28-10-1976 of the Punjab and Haryana High Court in LT. Ref. No. 16/74. P. A. Francis, B. B. Ahuja and Miss A. Subhashini for the Appel-lant. G. C. Sharma and S. P. Nayar for the Respondent. Devi Pal, S. R. Banerjee, J. B. Dadachanji, Ravinder Narain and Mrs. A. K. Verma for the Intervener (The Indian Aluminium) R. N. Bajoria, P. V. Kapur, U. K. Khaitan, Praveen Kumar and R. K. Chaudhary for the Intervener (Orient Sugar Mills) The Judgment of the Court was delivered by BHAGWATI, J.-The assessee, a private limited company, carried on several businesses amongst which there was a business of cold sto-rage plant. This cold storage plant was put up in the accounting year relevant to the assessment year 1967-68 and it was a new in-dustrial undertaking to which sub-section ( 4) of section 80J of the Income Tax Act, 1961 applied. The assessee did not make any profit in the business of cold storage plant during the assessment years 1967-68, 1968-69 and 1969-70, but there was profit in the other businesses and the losses, depreciation allowance and develop-ment rebate in respect of the cold storage plant were adjusted against the profit from the other businesses in computing the total i~ome of the assessee charg~able to tax for those assessment years. No loss and no part of the depreciation allowance or development rebate in respect of the cold storage plant remained un-absorbed so as to be available for carry forward and set olI in the as.sessment year 1970-71. The business of cold storage plant turned the comer after the initial teething trouble and it made a profit of Rs. 1,51,011/- in the assessment year 1970-71 after taking into account the current year's depreciation allowance and development rebate. The assessee claimed in its assessment to tax for the assessment year 1970-71 that the amounts of deficiency under section 80J for the current as well as past asseosment years were liable1 to be adjusted against the pro-fit of Rs. 1,51,011/- for that assessment year. Since the claim was based on section 80J, it would be convenien.t at this ~tage to ref~r to the relevant provisions of that section. Section 80J was introduced in the Act in place of section 84 by Finance Act, 1967 with effect from 1st April, 1968. The material portions of that section read as under : "80J. (1) Where the gross total income of an assessee includes any profits and gains derived from an industrial undertaking or a ship or the business of a hotel, to which this section applies, there shall, in accordance with and sub-ject to the provisions of this section, be allowed, in com-puting the total income,_ of the a§sessee, a deduction from such profits and gains (reduced by the deduction, if any, admissible to the assessee, under section 80HH) of so much of the amount thereof as do~s not exceed the amount cal-culated at the rate of six per cent per annum on the ' capital employed in the industrial undertaking or ship or business of the hotel, as the case may be, computed in the prescribed manner in respect of the previous year relevant to the assessment year (the amount cl)lculated as aforesaid being hereafter, in this section, referred to as the relevant amount of ca.Pital employed during the previous year) : AAT z, ater frate ve 1967-68, 1968-69 atx 1969-70 # atermdua & arg ane vet gar at, gatau awe ot aut F a qches% Sh We Te TH at Cate wae Gof eq F aaTated GHa or Pratzo awit a & ocda & Pare saat (ae) att at atkve ure 80-3 at Steer (3) & aeltr freteor ae 1970-71 aaae ofa av auite ae cer 1 frefcr af 1967-68, 1968-69are 1969-70 % fae grat (at)114,153wa ate 90,228 wa aitat cet 1 Prater 11,155at wi, 1970-71 o aaa gt at ae chor ame wf cot at ade cae83,391erat vt 1 Preffedt & atat fafos 83,391 wat atwe cer,TT Prafer af 1970-71 w ang ae gutat sarewha eat ene ae ot, eer 80-5 at sqerer (1) F seit tavaam mivatt aed 1,51,011 we& aw Hee FART BY TTvadt ¢ eX wet TH ae aT aT araey 2, Poss frofor aw FPau saat (att) at ca, wut, 11,155 ea,1,14,153wet TIX 90,228 waz, at Prater at 1970-71 at aac.eer 80-9 at sere (3) & aie sad ae amitat ST teat ot1 orereat aeraa frafor at 1970-717we Te Tat at Tine Tae G aiast or Post Prater aw &Fag grat (at) at watt ve Paare vat Paar, Par ae af.fruiter Paofear Prater af 1970-71 F after ade F arcane@ are are wet gat or Paes we? Prater av 1970-71 & chowwre Te To at Care THe ar are 80-7 a sear(1) #28 M of Law/79—17 «242Samet[eatarrere]favre ofaet [1979] 4 BAe fo Fo ait crane Paar aT aaat at at Pose freer aaa Pawat stare (3) & wetter wetedt at or aaah1 Fretted at ge area wane seat aAra Tey aT Pew attarare Hae aw areas aS Praterast 1970-71% 1,51,011 wa ar amr gar at kt areaae wer fat wor at fo faathedt ar ae & ware wer are atara F ane aT wel Tae WaT H at aT Taal at, Poy aTaAeaPearetA ae ararat Pea rer 8O-a at Sree (1) Ht(3)SIT APT Het ah TaeHB PAT MN aT HTT ATanmat t fost frufeor aay ah few se areas al ava Firatait aaronaur faere Pete ar vt 1,51,011was amved warns Peat wet afer, aalha frost Prego sar a oemare| oats at are wet gatot PreeFS Ut ata,aay arn or fare Pea]e at arafaa PHar aT Anat| ATGaterartt + ga ava at wage at fa food Prete ast” @ fadMate AITaTL HL saat alfaal ate Haagats cat PawsRedz arat vet at ay areata frets anafadeamare ar are ae fear vt arr wat aaa a ate Part aifaat, art aie waar Prufzr ake af 1970-71ar Pare1,517,011wa @ ave are fac aa a fouaaatadTel WET IT eS START TX aya gar fa are BO-a Ht sare(1) ste (3) & satel & Paw aterrre areare al Harr ATENTTT THT FA SAH ANT BT STITT ST Tae HT oTF ATATqda”a atdt atfrat, aaaate ate fare Pete at arrBITSTL SF AMT H HSH WHT ANY PHA WaT aT ASTI, HTaHyafer4 1,51,011wa & ae FFPrefeqat 1970-71 & ahr wars we Cot at aera wae at aac ere 80-a aitscare (1) & setter ate foes Prator an” a Paw wat at catar ara eter 80-7 at sree (3) & ate etdare Het Ferat ae Paar ate Prethedt ar Prefer tet aetdt aaare farfaataz faot.frettedl & werarea (atta) & weer atheath arene aera& fafaeeor at watt at feet wera 4:yO! MAR WTR Fo afeatat wile face fatto raat] arcer (aie)4 sel Ha aTaTaT ae atte ahora Tt Faoe frethedtt+ aratHo art aterat ate attaAH Prefectateancyat ae afafreteaact a Pau steraed FT aneBartaat aad ataal aia ate fost sae fretate ay ae a faa Pau MATTPete at aurH HIATTwey aay & an as seat dt ae feat wat , zafar ohgtaat, saearen at fare Pete ay mls at wat aarafarwel war Poreat Pas a aartte feat aT wa ae frefeor ad 1970-71 @ fau ame we are Prat awea ate aa alae Fareare & 1,51,011 wa & arr + ta Peet wore are altwer al ST Genet at aie Prethedt as aar Het ar share wT fHta art FF vet 83,891 war ay cam at aetdt at weqdadh at am ahr wR Te TST aT Mee THe at THe att& aie fee food faaicor ant a Paw saat (at) ay carat atetaley Sit 1) afcHh ater aT cata gt H HIT wTfourt 4 Pade ch faw araay Perot aie araam Pero oa ox Patera fatafes ser see anomaly ue & Paw fae faa fratTT (2) The deduction specified in sub-section ( 1) shall be allowed in computing the total income in respect of the assessment year relevant to the previous year in which the the industrial undertaking begins to manufacture or produce '!rticles or to operate its cold storage plant or plants or the ship is first brought into use or the business of the hotel starts functioning (such assessment year being hereafter, in this section, refer.red to as the initial assessment year) and each of the four assessment years immediately succeeding the initial assessment year: (3) Where the amount of the profits and gains derived from the industrial undertaking or ship or busines~ of the hotel, as the case may be, included in the total income (as computed without applying the provision~ of section 64 and before making any deduction under Chapter VI-A or sec-ti_on 280-D) in respect of the previous year relevant to an assessment year commencing on or after the 1st day of Apd, 1967, (not being an assessment year or subsequent to the. fourth assessment year as reckoned from the end of the initial assessment year) falls short of the relevant al!J.ount of [1979] l s.c.R. capital employed during the previous year, the amount of such shortfall, or, where there are no such profi!S and gains, an amount equal to the relevant amount of c~pital employed during the previous year (such amount, in either case, being hereafter, in this section referred to as deficiency) shall be carried forward and set off against the profits and gains refer-red to in sub-section (1) [as computed after allowing the deductions, if any, admissible under section 80 BB and the said sub-section (1)] in respect of the previous year relevant to !he next following assc~sment year and, if there are .no such profits and gains for that assessment year, or where the defi-ciency exceeds such profits and gains, the whole or balance of the deficiency, as the case may be, shall be set off against such profits and gains for the next following assessment year and if so far as such deficiency cannot be wholly so set off, it shall be set off against such profits and gains. assessable for the next following assessment year and so on: D Provided that- (i) in no case sha