Srinivasa Iyengar, J.—The Income Tax Appellate Tribunal, Bangalore Bench, has referred the following question for the opinion of this court :

"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in holding that the assessee was entitled to the deduction under section 80J of the Income Tax Act, 1961, in respect of the new buildings and machinery installed during the accounting year relevant to the assessment year 1970-71 ?"

2. The assessee made a claim for relief under s. 80J of the Income Tax Act, 1961, (hereinafter referred to as "the Act"), in a sum of Rs. 21,30,606. In support of the claim, particulars were given about the extent of the ore raised and the new buildings put up and new machinery installed. The ITO, however, declined to grant relief being of the opinion that the existing framework had only been expanded to secure larger output. On the appeal also, the claim of the assessee was not recognised. The AAC took the view that all that had been done was only to add a little more during the relevant year to the well-established business of the company which was being carried on for several years. The decision of the Calcutta H