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2002 (11) TMI 26 - HC - Income Tax"1. Whether, Tribunal was right in holding that the assessee-company is entitled to investment allowance under section 32A on machinery leased out in the course of its business of leasing? – Held that assessee-company is entitled to investment allowance under section 32A of the Act on machinery leased out in the course of its business of leasing. - 2. Whether, Tribunal was right in law in holding that the expenditure incurred on advertisement inviting fixed deposits from public does not form part of the sales promotion expenses calling for disallowance under section 37(3A)?" - Since there is a statutory compulsion on the assessee-company to advertise the notice calling for deposits from the public, the expenditure on advertisements is revenue in nature. We hold that the Appellate Tribunal was correct in holding that the expenditure incurred for inviting deposits from the public does not form part of the sales promotion expenses. Accordingly, we answer the second question of law in the affirmative
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