TMI Blog1978 (12) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... printing press which started for the first time during the previous year ended 31st March, 1973 relevant for the asst. yr. 1974-75. The only ground in the appeal relates to the allowance for a sum of Rs. 14,543 spent by the assessee on the purchase of type used in his printing press. The assessee claimed that the types were subject to rapid wear and tear and so they did not represent any capital ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lowance. 3. Sri D.C. Roy, the learned representative for the assessee, urged before us that the authorities below were not justified in their decision. He fairly pointed out that decision in the case of Jansatta Karyalaya vs. CIT Gujarat(1), has decided a similar issue against the assessee. However, he invited our attention to the decision in the case of R.S. Radha Kishen Kapoor vs. CIT, U.P. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tment, on the other hand, supported the orders of the authorities below. He stated that the expenditure under consideration was incurred in connection with the setting up of the profit-earning machinery because they were purchased right at the commencement of the business. He urged that the expenditure, therefore, was obviously incurred on capital account. He relied on the case of Jansatta Karyala ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e present case in order to justify the claim of the assessee. The case of Carlton Hotel (P) Ltd(3). Was concerned with a case of business which had already started several years ago. That was not a case of the very first year of starting the business and so the principle therein cannot be applied to the facts of the instant case. On the contrary; the case, Janastta Karyaloya(1) is a direct authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... acement expenses. Otherwise, he would be justified in treating this expenditure as capital expenditure. For this purpose, we set aside the reassessment of the ITO and direct him to do the assessment afresh in accordance with law after giving a reasonable opportunity of being heard. 6. In the result, the appeal may be treated as allowed for statistical purposes. - - TaxTMI - TMITax - Income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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