C.I.T. GUJARAT versus ELECON ENGINEERING CO. LTD.

C.I.T. GUJARAT versus ELECON ENGINEERING CO. LTD.

Average profit computed under Rule 19(5) must be added to capital as per Rule 19(1) for determining the capital employed in new industrial undertakings under section 84 for exemption purposes.

Parties
Appellant: C.I.T. Gujarat; Respondent: Elecon Engineering Co. Ltd.
Jurisdiction
India
Judgment Date
21 July 1987
Procedural Posture
Civil Appeal / Final Judgment
Outcome
appeal dismissed
Legal Topics
Computation of Capital Employed, Exemption for New Industrial Undertakings
Taxation Computation of Capital Employed Exemption for New Industrial Undertakings

Case Brief

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Parties

C.I.T. Gujarat

Appellant

Elecon Engineering Co. Ltd.

Respondent

Procedural Posture

Civil Appeal / Final Judgment

Legal Issues

  1. 1 Whether average profit under Rule 19(5) of the Income Tax Rules, 1962 should be added to the figure computed under Rule 19(1) for determining capital employed for section 84 exemption

Ratio Decidendi

Average profit computed under Rule 19(5) must be added to capital as per Rule 19(1) for determining the capital employed in new industrial undertakings under section 84 for exemption purposes.

Court Disposition

appeal dismissed

Orders

  • parties to bear their own costs throughout