TMI Blog1998 (4) TMI 72X X X X Extracts X X X X X X X X Extracts X X X X ..... at the instance of the Revenue arising out of the assessment of the respondent for the assessment year 1977-78 are : "1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was justified in holding and had valid materials to hold that the provision made by the assessee towards contribution to Death Relief Fund and also the contribution made by it to the employees h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... who were also required to contribute, the employer's contribution was to match the contribution made by the workmen. The claim made for regarding the amount as an item of expenditure had been disallowed by the Income-tax Officer on the ground that the employer had no statutory obligation to contribute to that fund. That view of the Income-tax Officer was extraordinarily narrow, completely ignoring ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal. Our answer to the first question, therefore, is that the contribution made by the assessee to the Death Relief Fund is a legitimate item of expenditure and is an item of the expenditure of revenue character. As regards the second part of the first question, viz., contribution made by it to the employees housing society for construction of roads, this again is an item of welfare expenditure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sible deduction. The second question concerns the extent to which the depreciation is to be allowed on the plant and machinery that comes into contact with corrosive chemicals in the sugar factory of the respondent. The respondent runs a sugar mill and it had claimed that a higher rate of depreciation should be allowed as the machinery installed in the sugar factory comes into contact with corro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unal to verify this aspect and allow the higher depreciation, if the machinery used by the assessee for manufacturing sugar did in fact come into contact with corrosive chemicals. In this case also, we adopt the same course and direct the Tribunal to verify as to whether the chemicals used in the manufacture of sugar are corrosive, and the items of machinery, if any, that came into contact with ..... X X X X Extracts X X X X X X X X Extracts X X X X
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