1999 (8) TMI 53

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..... t, 1961, the Income-tax Appellate Tribunal has referred the following question of law to this court for opinion, at the instance of the assessee : "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in holding that the expenditure incurred on asphalting the existing kaccha road within the factory brought into existence a new asset or an .....

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..... t Commissioner of Income-tax held that the assessee had substantially renovated the roads and hence the expenditure can be classified as a capital expenditure. According to him, the life of these roads would be much more than what was stated by the assessee. He, therefore, held that the expenditure was a capital, expenditure. He allowed depreciation at the rate of 5 per cent. He rejected the claim .....

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..... the expenditure was not a revenue expenditure and confirmed the disallowance. It is against this background that the present reference is filed. We have heard Mr. P. Vaidya, learned counsel for the assessee, and Mr. R. V. Desai and Mr. P. S. Jetley, learned counsel for the Revenue. Learned counsel for the parties are agreed that the present controversy is now covered by the decision of this court .....

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