COMMISSIONER OF INCOME TAX,BOMBAY vs M/S. FILTRONE INDIA LTD.M/S. ALCOCK ASHDOWN & CO. LTD.

The Supreme Court interpreted Section 84 and Section 80-J of the Income-tax Act, 1961, focusing on the phrase 'capital employed in the undertaking'. The Court held that the capital employed includes assets that are integral to the industrial undertaking, even if not yet put to use, as long as the business operations have commenced. The appeal was allowed, affirming the Appellate Tribunal's decision that the assets under construction were part of the capital employed for the new industrial undertaking.