1980 (1) TMI 144

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....ling Dust Extraction Units to Carding Machines should beneficiary allowed to beneficiary taken as a revenue expenditure in computing the total income for the asst. yr. 1975-76 corresponding to the previous year ended 31st March, 1975. 2. The ITO found that the Dust Extraction Units consisted of electric motors, fans, dust chamber and suction pipes which were attached to the Carding Machines for....

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....led to the CIT (A) and contended that since these machines were not independent shifts but were only accessories the assessee did not derive any enduring benefit. The assessee also relied upon the decision of the Madras High Court in the case of CIT, Madras vs. Mahalakshmi Textile Mills Ltd (1). The CIT (A), however, found that though they were attached to the Carding Machines they were independen....

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.... fluff arising out of the working of the Carding Machines and this expenditure therefore actually replaced acquisition expenditure on manual cleaning which was the Revenue expenditure. In addition it was submitted that this reduced the health hazard by inhalation of the fluff as well as other hazards in manual cleaning and the expenditure should therefore beneficiary allowed as having been incurre....

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....erefore that was not a proper analogy for allowing the claim of the assessee. 6. On a careful consideration of the rival submissions we are of the opinion that the assessee is entitled to succeed. Undisputedly the machines in question were accessories to the Carding Machines. They have been designed to extract the dust arising out of the operation of the Carding Machines and could therefore be ....