1984 (7) TMI 206

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....y the assessee is inadmissible capital expenditure. The assessee had paid guarantee commission of Rs. 7,593 to a bank which stood guarantee for the assessee regarding the assessee's machinery purchase on deferred payment basis. The ITO disallowed it as capital expenditure. On the assessee's appeal the Commissioner (A) held that the guarantee commission should be treated as revenue expenditure foll....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....appeal the Commissioner (A) directed that depreciation should be allowed on the full cost of the assets without reducing the cost by the amount of Central subsidy received by the assessee, following the decision of the Special Bench of this Tribunal dated 2nd February, 1981 in I.T.A. Nos. 2899 & 2971 (Mad.)/1977-78 in the case of Pioneer Match Works v. ITO reported in (1982) 1 SOT 331 (Mad.). We h....