O.CHINNAPPA REDDY, J.

1. The Income-tax Appellate Tribunal, Chandigarh, has referred the following question for our decision :

"Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in allowing the deduction under section 80J of the Income-tax Act, 1961 ?"

2. The assessee, a private limited company, carried on several businesses, amongst which is a cold storage business, a new industrial undertaking within the meaning of section 80J of the Income-tax Act, 1961. It was put up in the accounting year corresponding to the assessment year 1967-68. The company did not make any profit in the cold storage business though it did in its other businesses. The losses, the unabsorbed depreciation and the unabsorbed development rebate attributable to the cold storage business during the assessment years 1967-68, 1968-69 and 1969-70 were adjusted against the profits of the other businesses while computing the total income of the assessee for those years. There was no loss, depreciation or development rebate, which had remained unadjusted and which was available for adjustment during the assessment year 1970-71. For the assessment year 1970-71,