TMI Blog1976 (7) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 1961, referred the following question of law for the opinion of this court : " Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the expenditure of Rs. 37,390 was not of capital nature but it was an expenditure incurred by the assessee wholly for the purposes of its business and allowable as a deduction under section 37 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 66 Replacement of old and worn-out hinges, etc. 567 Putting frosted glass in the pink hall. ----------------------------- Total Rs. 37,390 ----------------------------- The Income-tax Officer considered that the expenditure given above could not be said to be on account of current repairs to the building and that the expenditure incurred had brought into existence an asset of enduri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purposes of its business and was, therefore, allowable as deduction under section 37 of the Act. Aggrieved by this order of the Tribunal, the revenue has come up with this reference raising the question mentioned above. Section 37 of the Income-tax Act, 1961, provides for the deduction, of any expenditure not being in the nature of capital expenditure laid out or expended wholly and exclusively ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... frosted glass in the pink hall. These items are in the nature of petty replacement of items which already existed and, therefore, these could not be taken as capital expenditure at all. One other item of expenditure like putting of decorated mirrors with pictures of religious personages or putting of plaster-moulded roof decoration in the dining-cum-lecture hall was incurred with a view to beauti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n and fixing of plywood panels would absolutely be of no use with reference to any other place. They are just fixed in the walls so that they would present an inviting appearance for the customers assembled there. They cannot be removed and used. Having regard to the nature of the business carried on by the assessee and the nature of the expenditure described above, we are satisfied that the Tribu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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