MADHAVA REDDY, J.

( 1 ) IN these writ petitions the validity of r. 19a of the I. T. Rules, 1962, as it stood applicable to the assessment years 1969-70 and 1974-75, is challenged as ultra vires of s. 80j of the I. T. Act, 1961, in so far as it prescribes that in computing the capital employed in an industrial undertaking, (1) the borrowed money and debts due by the assessee should be deducted, (2) that it should be computed as on the 1st day of the previous year, and (3) that it should be assessed at the written down value of the asset after allowing depreciation. These writ petitions can be conveniently disposed of by a common judgment.

( 2 ) SECTION 80j of the I. T. Act, in so far as it is relevant for our present purpose, reads as follows:"80j. Deduction in respect of profits and gains from newly established industrial undertakings or ships or hotel business in certain cases.- (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 subject to the provisions of this section, be allowed, in computing the total income