TMI Blog1994 (2) TMI 88X X X X Extracts X X X X X X X X Extracts X X X X ..... taken in the case of the assessee for several years since asst. yrs. 1982-83 and onwards. 2.1 The learned counsel for the assessee invited our attention towards the decision of the Tribunal in assessee's own case for asst. yr. 1982-83 in ITA No. 474/Ahd/1988 dt. 16th Sept., 1991. In the said decision, the assessee's contention has been accepted by the Tribunal and it has been held that concast shed should be treated as plant and machinery for the purpose of granting depreciation at higher rate as well as extra shift allowance and investment allowance thereon. Respectfully following the same, we direct the AO to allow depreciation allowance, extra shift allowance and investment allowance on the cost/WDV of concast shed by treating the same as plant and machinery in accordance with the provisions of law. The AO may satisfy himself with regard to fulfilment of other conditions in relation to grant of extra shift allowance and investment allowance in accordance with the relevant provisions of law in the respective years under consideration. 3. The second common ground relates to grant of depreciation, additional depreciation allowance, extra-shift allowance and investment allowan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Tribunal in the said order, with which we agree, we direct the AO to treat the aforesaid assets as plant and machinery and grant deduction in respect of depreciation allowance, additional depreciation allowance, extra shift allowance and investment allowance on the cost of these assets subject to fulfilment of other conditions for grant of such allowances in accordance with the relevant provisions of law. 4. Another common ground, numbered as ground No. 3, in all these appeals, is that the following amounts of sales-tax incentive treated as revenue receipt by the Departmental authorities is invalid; and the same should be regarded as a capital receipt: Asst. yr. Amount . Rs. 83-84 1,38,762 84-85 11,45,264 85-86 18,00,439 87-88 14,56,093 At the time of hearing, the learned counsel for the assessee submitted that it would not like to press this ground in all the aforesaid appeals. It was also pointed out that the AO has treated the aforesaid item as a revenue receipt on the basis of discussions made in assessee's case for asst. yr. 1986-87. Since the assessee's appeal for asst. yr. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unning and maintenance of motor car expenses by invoking the restrictive provisions of s. 37(3A) to (3D). The learned counsel for the assessee submitted that expenses incurred by way of hire charges of Matador cannot be treated as expenses incurred for car. He also submitted that, the repairing expenses will fall outside the scope of s. 37(3A) in view of the judgment of Hon'ble Bombay High Court in the case of CIT vs. Chase Bright Steel Ltd. (1989) 75 CTR (Bom) 60 : (1989) 177 ITR 124 (Bom) which has later on been followed by the Hon'ble Gujarat High Court. The learned Sr. Departmental Representative supported the orders of the departmental authorities. 9.1 We have considered the submissions made by the learned representatives. We are not inclined to accept that the expenses incurred for running or for payment of hire of matador should be treated as of a distinct and different nature than expenses incurred on running of motor cars. In our view matador would be covered within the meaning of motor cars used in the provisions contained in s. 37(3A). We, however, direct the AO to examine the relevant details of the expenses as mentioned in para 15 of the assessment order and expense ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ommissioning of the third furnace as inauguration expenses and the same was laid out wholly and exclusively for the purpose of its business and no part thereof could be validly disallowed. The learned Sr. Departmental Representative supported the orders of the Departmental authorities. 12.1 We have carefully considered the submissions made by the learned representatives and have also gone through the relevant parts of the orders of the Departmental authorities. The learned CIT(A) came to the conclusion after perusing the details that most of these expenses would fall for consideration under the provisions of s. 37(2A) or alternatively not strictly relating to business. He also observed that the disallowance made by the AO is fair and reasonable. A perusal of para 10 of the assessment order indicates that the AO has observed that the said expenditure of Rs. 33,381 includes Rs. 2,100 on account of expenses of Navchandi and Rs. 6267 on account of mandap, lunch and other expenses. According to him balance of the expenditure is wholly of entertainment nature such as sweets and drinks etc. He, therefore, disallowed a sum of Rs. 20,000 out of the gross claim of Rs. 33,381. No where in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the order of the Departmental authorities in relation to this ground. 16.1 After considering the submissions made by the learned representatives, we are of the considered opinion that interest charged under s. 220 of the IT Act, 1961, amounting to Rs. 8,43,309 claimed as deduction by the assessee cannot be allowed. The view taken by the learned CIT(A) denying grant of deduction in respect of the amount of interest paid for late payment of income-tax is clearly supported by the judgment of Hon'ble Allahabad High Court in the case of Dhampur Sugar Mills Ltd. vs. CIT (1991) 95 CTR (All) 258 : (1991) 188 ITR 787 (All) and such a view has consistently been taken by the Ahmedabad Benches of the Tribunal in several cases. The view taken by the CIT(A) in relation to this ground is, therefore, confirmed. 17. Ground No. 9 relates to disallowance of Rs. 3400 being contribution to recreation centre for the benefit of appellant's employees. The learned counsel urged that the amount in question should be allowed as a deduction. The AO and the CIT(A) has disallowed the said claim in view of the provisions contained in s. 40A(9). The learned counsel did not point out any further details as t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
