TMI Blog2004 (11) TMI 304X X X X Extracts X X X X X X X X Extracts X X X X ..... to the deletion of disallowance of assessee s claim of Rs. 7,92,763 under s. 35(1)(iv) of the IT Act, 1961 (hereinafter referred to as the Act ). 4. This issue has been decided by the AO at pp. 2 to 8 para (4) of assessment order. The learned CIT(A) has discussed this issue at pp. 2 to 4 paras 3 to 5 of the appellate order. 5. The brief facts of the case are that the return of income was filed on 30th Dec., 1993, declaring total income of Rs. 31,49,000. The return was accompanied with tax audit report, audited balance sheet and P L a/c. Subsequently it was processed under s. 143(i)(a) of the IT Act, 1961 (hereinafter referred to as the Act ) on 20th Jan., 1994. The assessee claimed capital expenditure of Rs. 7,92,763,84 on research and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penditure is incurred on purchase of plant and machinery to be used in the R D unit. The decisions of the Hon ble Orissa High Court in the case of Belpahar Refractories Ltd. vs. CIT (1994) 118 CTR (Ori) 181 : (1994) 207 ITR 144 (Ori) and the decision of the Hon ble Karnataka High Court in the case of CIT vs. H.M.T. Ltd. (1992) 108 CTR (Kar) 215 : (1993) 199 ITR 235 (Kar) relied by the learned Authorized Representative support his arguments. In the light of the above we hold that the findings of the learned CIT(A) are perfectly alright and we decline to interfere with the same. Consequently, the ground of appeal taken by the Department is dismissed. 9. The second ground pertains to the deletion of disallowance of assessee s claim of Rs. 2, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee has been allowed such deductions in earlier years upto asst. yr. 1991-92. 14. On the other hand, the learned Departmental Representative relied on the orders of the AO. 15. We have heard the rival submissions and have perused the evidence on record. 16. After careful perusal of the evidence and material available on record, we are of the considered opinion that the payment of guarantee commission is an allowable deduction. The learned CIT(A) s order is perfectly alright and we uphold his order and sustain the relief granted by the learned CIT(A). Consequently, this ground of the Department is dismissed. 17. In ground No. 3 the Department has disputed the deletion of disallowance of assessee s claim of Rs. 39,514 on acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aken by the Department is dismissed. 23. The fourth ground taken by the Department pertains to deletion of disallowance of assessee s claim of Rs. 26,514 on account of 100 per cent depreciation on wooden structure. 24. This issue has been decided by the AO at p. 15 of assessment order. The learned CIT(A) has discussed this issue at pp. 10 11 paras 19 to 21 of the appellate order. 25. At the very outset of arguments, it has been submitted by the learned Authorized Representative that the issue stands fully covered in assessee s favour in assessee s own case of asst. yr. 1994-95 decided by this Bench in ITA No. 570/Jdpr/1998. 26. In the result, the appeal by the Department in ITA No. 115/Ju/1998 is dismissed. 27. Now we shall take ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... horized Representatives submission that the expenditure incurred during the course of stay relating to telephone, local conveyance, postal expenditure, medical expenditure are not to be taken into account for the purpose of disallowance under r. 6D because such expenditure is normal business expenditure for the purpose of working out disallowance under r. 6D, only the expenditure relating to the journey, boarding and lodging is to be taken into account, deleted the addition made by the AO. 33. After hearing both the learned rival representatives, we are of the considered opinion that the finding of the learned CIT(A) is quite justified and we find no reason to interfere with the same. 34. In the result, the appeal of the Department in I ..... X X X X Extracts X X X X X X X X Extracts X X X X
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