Court allows donation deduction under section 80G but disallows certain expenses. Machinery as capital, employee costs as revenue.

The High Court of Madras upheld the decision to allow a donation as a deduction under section 80G but disallowed certain expenditures as deductions. The court affirmed the treatment of shifting machinery expenses as capital expenditure and shifting employee expenses as revenue expenditure.

---

---

The High Court of Madras delivered a judgment regarding various questions raised by the Revenue and the assessee. The court did not answer the question about the provision made for leave salary deduction. The donation made by the assessee was allowed as a deduction under section 80G. The court upheld the decision that certain expenditures were not allowable deductions. The court approved the Appellate Tribunal's decision to treat shifting machinery expenses as capital expenditure and shifting employee expenses as revenue expenditure.

---