TMI Blog1992 (7) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... ng that initial depreciation on tools and instruments amounting to Rs. 7,77,407 and Rs. 1,58,117, respectively, be allowed ? 2. Whether, on the facts and, in the circumstances of the case, the Tribunal was justified in holding that the expenditure of Rs.29,886 incurred on fixation of R. C. C. Jalies on the boundary wall is allowable as revenue expenditure ? 3. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the deduction under section 80J is admissible in full as against proportionate deduction allowed for four months by the Inspecting Assistant Commissioner (Assessment)?" The brief facts of the case are as under: During the course of examination of the books of account of the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ew that the expression " installed , would include placing the apparatus in position for service or use. The Calcutta High Court in CIT v. Steel Rolling Mills of Hindusthan (P.) Ltd. [1987] 164 ITR 633 has held that, if the popular meaning of the word " installation " which envisages the setting up of a complicated piece of machinery or manufacturing unit for the purpose of production is given, then a number of items would have been excluded from the expression "plant". Following the Allahabad High Court decision (sic), it was held that if a gas cylinder is used for storing gas, it can be said to have been installed in the business. The view taken by the Income-tax Appellate Tribunal is upheld and it is held that the Income-tax Appellate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... advantage of enduring benefit, the amount is to be allowed as a revenue expenditure. It would be evident that the Tribunal has proceeded on an altogether different ground, which was not before the Inspecting Assistant Commissioner (Assessment) or before the Commissioner of Income-tax (Appeals ) and it was never the claim of the assessee that the amount pertains to replacement. Mr. Ranka, appearing on behalf of the assessee, has relied on the judgment of the Supreme Court in CIT v. Kalyanji Mavji and Co. [1980] 122 ITR 49, wherein the Hon'ble Supreme Court has held that, in respect of specific provision for allowance of "current repairs ", other repairs can be allowed under general deduction of business expenditure. It was further observe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of replacement was not before the Inspecting Assistant Commissioner (Assessment) and the Commissioner of Income-tax (Appeals). In these circumstances, it would be in the fitness of things if the matter is sent back to the, Income-tax Appellate Tribunal to give finding on the question as to whether the amount pertains to jalies which have become obsolete or is in respect of replacement. The Inspecting Assistant Commissioner (Assessment) has held that the Palghat unit started production from the month of December, 1975, and the deduction under section 80J could be allowed for the period of four months. The Income-tax Appellate Tribunal has allowed deduction fully. Without discussing this matter in further detail, suffice it to say that th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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