TMI Blog1988 (12) TMI 337X X X X Extracts X X X X X X X X Extracts X X X X ..... s of law referred to this Court at the instance of the department are: 1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in holding that house rent allowance paid to the employees docs not amount to perquisite for the purpose of computing the disallowance under section 40(a)(v) of the Income-tax Act, 1961? 2. Whether, on the facts and in the cir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure of ₹ 8, 640 involved herein was incurred by the assessee for transferring its plant and machinery from Bhandup to Kandivli. The factory at Bhandup was on lease whereas the factory at Kandivli was a new factory building constructed by the assessee. The expenditure incurred in dismantling and shifting the plant and machinery from Bhandup to Kandivli, according to Dr. Balasubramanian, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cision in CIT v. Associated Cement Co. Ltd. [1988] 172 ITR 257 and the Calcutta High Court decision in CIT v. Karanpura Development Co. Ltd. [1982] 144 ITR 538 were more akin to the facts of this case and, therefore, the Tribunal was right in allowing the expenditure as the revenue expenditure. 4. In our opinion, the issue involved herein is squarely covered by the Supreme Court decision in Sit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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