TMI Blog1994 (7) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... the Revenue authorities. 5. We, for the sake of consistency, follow the decision of the Tribunal in assessee's own case for asst. yr. 1982-83 in ITA Nos. 530 615/Chd/86 and delete the addition of Rs. 18,178. 6. Ground No. 4(a) and (b) relate to disallowance of Rs. 12,429 under r. 6D of the IT Rules, 1962. This ground is dismissed as not pressed. 7. Ground No. 5 is relating to disallowance of Rs. 85,361 on account of bonus paid in pursuance of an ordinance issued during the previous year relevant to the assessment year under appeal. The claim of the assessee has been dismissed for want of evidence. The CIT(A) has confirmed the disallowance on the ground that the copy of the ordinance and the details of payment of advance had not been filed before the Assessing Officer. 8. The learned counsel for the assessee contended that assessee was handicapped in so far as most of the records had been burnt in a fire that broke out in the office of the assessee. However, the tax audit report had been filed before the Assessing Officer which contains the details of the bonus paid. The learned counsel contended that in view of these circumstances the CIT(A) was not justified in ignoring ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... examined the details available on record and are satisfied that the expenditure incurred by the assessee was on account of maintenance of generator and, therefore, the same could not be treated as capital expenditure. The addition of Rs. 6,127 is accordingly deleted. 12. Next ground of appeal is relating to disallowance of deduction under s. 80G in respect of a sum of Rs. 1 lakh paid to Escorts Cardiac Disease Hospital Society. The claim of the assessee has been disallowed on the ground that the payment was as a membership fee to the society and, therefore, deduction could not be allowed. The Assessing Officer had disallowed a sum of Rs. 1,25,000. However, under s. 154, deduction of Rs. 25,000 paid to Escorts Cardiac Disease Hospital Society was allowed. The learned counsel for the assessee contended that if the amount paid to the society is taken as membership fee then deduction at 100% was allowable to the assessee as revenue expenditure as employees of the assessee are entitled to various benefits from the hospital such as priority of admission, discount on bills and credit facility to the assessee on account of payments relating to the employees. The learned counsel contended ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pointed out that depreciation has been allowed to the assessee in respect of the assets. It was accordingly contended that the Revenue authorities were not justified in declining the claim of the assessee. 16. The learned Departmental Representative, on the other hand, contended that the machinery could not run without the voltage stabiliser and, therefore, it could not be said that the machinery had been installed before31st March, 1985. The claim, according to the learned Departmental Representative, was rightly rejected. 17. We have given our careful consideration to the rival contentions. Sec. 32(1)(iia) provides for deduction equal to one-half of the amount of admissible depreciation exclusive of double or multiple shift allowance of such machinery as were installed after31st March, 1980but before 1st day of April, 1985. No deduction was, however, allowable in case the machinery or plant was installed in any office premises or any residential accommodation or on any office appliance or road transport vehicles or in respect of any machinery or plant, the whole of the actual cost of which is allowed as a deduction either by way of depreciation or otherwise in computing the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earlier years, deduction at 1/6th was permissible to the assessee in each of the years that remained out of the total six years. 20. The learned Departmental Representative, on the other hand, contended that the conditions for grant of deduction under s. 35AB not being specified in respect of the payments made in earlier previous years, assessee has rightly been denied the deduction. 21. We have given our careful consideration to the rival contentions. As already observed above, s. 35AB has been incorporated by the Finance Act of 1985 w.e.f.1st April, 1986. It accordingly applies to asst. yr. 1986-87. Sec. 35AB is reproduced hereunder for the sake of facility: "35AB(1): Subject to the provisions of sub-s. (2), where the assessee has paid in any previous year any lump sum consideration for acquiring any know-how for use for the purposes of his business, one-sixth of the amount so paid shall be deducted in computing the profits and gains of the business for that previous year, and the balance amount shall be deducted in equal instalments for each of the five immediately succeeding previous years." 22. A perusal of the section reproduced above clearly indicates that basic cond ..... X X X X Extracts X X X X X X X X Extracts X X X X
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