SABYASACHI MUKHERJI, SUDHINDRA MOHAN GUHA, JJ.

( 1 ) IN this reference under Section 256 (1) of the I. T. Act, 1961, the following question has been referred to this court :"whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that for the purposes of allowing a deduction under Section 80-I the words 'such profits' occurring in that section mean 'the profits and gains attributable to any priority industry' without deducting therefrom any loss arising in any other business activity under Section 70 or Section 71 of the Income-tax Act, 1961 ?"

( 2 ) THIS reference relates to the assessment for the assessment year 1971-72. The ITO dealt with the claim for deduction under Section 80-I of the I. T. Act, 1961. He observed in his order, inter alia, as follows : "deduction : Under Section 80-I Theassessee claimed relief Under Section 80-I amounting to Rs. 1,23,301 calculated @ 8% on a profit of Rs. 15,53,761 attributable to priority industry. But the gross total income was determined at Rs. 3,78,573 as above. It appears that the gross income calculated by the assessee (sic ). This indicates that the priority income was offset by loss from non-pr

Click Here to Read the rest of this document