TMI Blog1979 (12) TMI 27X X X X Extracts X X X X X X X X Extracts X X X X ..... the firm, Pure Ice Cream Co., which is carrying on the business of manufacture and sale of ice-cream, effected certain constructions in its premises and incurred an expenditure of Rs. 1,34,999. This expenditure, however, was ultimately brought down to Rs. 92,000 after a settlement with the contractor who had carried out the construction. The assessee claimed that all this expenditure was incurred on cold storage room, platform for machines, observation tower and cooling tower, etc. This was accepted by the ITO at the original assessment stage and the entire amount was allowed as incurred on the installation of the machinery and plant. The appropriate depreciation and development rebate as permissible on machinery were then allowed. Subs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vation of engine pasteurising rooms 7,385 Roof 5,345 And Serial Nos. 122 to 130 793 ----------------- 85,317 ----------------- The total cost of these items as given above, when considered in the context of the settlement arrived at with the contractor vis-a-vis the initial bill of Rs. 1,34,999, came to Rs. 58,130. The rest of the expenditure totalling to Rs. 33,886 was attributed by the AAC towards the cost of plant and machinery installations. The other amount of Rs. 58,130 was excluded and development rebate thereon was withdrawn while depreciation was restricted to 5% only. The assessee feeling still aggrieved, then moved the Appellate Tribunal. Two points were urged: firstly, the entire expenditure of Rs. 92,0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y could not effectively work and ice cream could not be produced, had to be treated in similar manner. However, with respect to the other items we find that their nature has not been brought out by the AAC and the Tribunal. Some of the items mentioned are main entrance, exterior walls, store-room, etc. It is not clear if the exterior walls pertain to the boundary walls of the factory building or are inter-connected or linked to the plant and the building relatable to the plant as to form a sort of integral part of the machinery and plant. In the absence of these details it is difficult to express any opinion about the nature of these different items. From the side of the assessee it has been pleaded that all these items were in fact an i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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