COMMISSIONER OF INCOME TAX Vs. PREMIER VEGETABLES PRODUCT

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal has referred the following question of law arising out of its order dated August 1, 1985, in respect of the assessment years 1975-7.6 and 1979-80 under Section 256(1) of the Income-tax Act, 1961 :

(2.) THE brief facts of the case are that the Income-tax Officer first set off unabsorbed depreciation, development rebate and brought forward losses claimed under Section 80) for the earlier years before adjusting the deduction under Section 80J of the current year. THE order of the Income-tax Officer was confirmed in appeal. In the second appeal before the Tribunal it was observed that for the purpose of determining priorities, the profits and gains for the current year should be reduced by current depreciation allowable but not by the amount of carried forward losses or depreciation or investment allowance for the purpose of considering the relief under Section 80J. Section 80J reads as under :