TMI Blog1983 (7) TMI 18X X X X Extracts X X X X X X X X Extracts X X X X ..... been formed to run races for the benefit of jockeys, trainees, horse owners, and to entertain others. For the assessment year 1976-77, the assessee had incurred a sum of Rs. 5,40,862 on asphalting of roads within the race course premises. The assessee claimed that it was a revenue expenditure. The assessing authority upon perusal of the bills disallowed some part of the claim on the ground that there was capital expenditure in the sum of Rs. 1,80,000. Upon appeal, the Commissioner (Appeals) upheld the assessment relating to the said capital expenditure at Rs. 1,80,000 but allowed depreciation on the said amount at the prescribed rate. The appeal preferred by the Revenue was dismissed by confirming the order of the Commissioner (Appeals). ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upport from the decision of the Bombay High Court in CIT v. Colour Chem Ltd. [1977] 106 ITR 323, in which the following observations may be noticed at page 327 : "The Supreme Court decision on which Mr. Hajarnavis has relied is, in our view, clearly distinguishable on facts. In that case the depreciation was claimed not merely on the cost of erecting the building on the land but also on the cost of the land over which the construction had been put up and it was in that context that the Supreme Court held that the word I building occurring in the relevant provision of section 10(2) of the Act meant 'structure' and did not include the site. If, in the instant case, the cost of the land over which the roads had been laid out was sought I to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Srinivasan, however, referred us to the Income-tax (4th Amendment) Rules, 1983, which was brought into force from April 2, 1983. In the remarks column of App. I therein, the following clarification is found: Building includes roads, bridges culverts, wells and tube-wells. Mr. Srinivasan contended that it is only with effect from April 2, 1983, the intention of the Government has been made clear by the inclusion of roads, bridges, culverts, wells and tube-wells within the meaning of" building " and prior to the amendment, the " building " ought not to be construed to include the said items. We do not think that it is a correct approach to be made. If we may say so, the Government appears to have made the amendment by way of clarificat ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
