TaxTMI 
TaxTMI 
2015 (3) TMI 94
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....d 2.1.2013 the appeal was admitted on the questions of law mentioned in the memo of appeal. Our answers on these questions are as follows:- Question No.1:- Whether on the facts and circumstances of the case the Hon'ble Tribunal was legally justified in upholding the order of CIT (A), who directed to reduce the cost of production by the amount of interest and rent while the interest income has not been considered as business income? The question is not correctly formulated. The finding of ITAT is at page 4, paragraph 3 to paragraph 6. The question is covered with question no.2 of Income Tax Appeal No.211 of 2011, CIT v. Dhampur Sugar Mills, Dhampur decided on 18.09.2013. The question is decided in favour of the assessee and agai....
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....ve upheld the finding of ITAT as finding of fact. The question is decided in favour of the assessee and against the revenue. Question No.3 Whether on the facts and in the circumstances of the case, the Hon'ble Tribunal was legally justified in restoring the issue regarding interest on excess levy sugar price to the file of Assessing Officer while Hon'ble Allahabad High Court vide order dated 5.3.2003 decided this issue in favour of the revenue? The question is covered by question no.1 of Income Tax Reference No.122 of 1995, CIT v. Dhampur Sugar Mills, Dhampur decided on 29.04.2005 inter party and is decided in favour of the assessee and against the revenue. Question No.4 Whether on the facts and circumstances of th....
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....to be for the purpose of business and thus the Tribunal has erred in law in allowing depreciation on tubewell. Section 32 (1) (i) falling in Chapter IV-Computation of Business Income provides for depreciation on buildings, machinery, plant or furniture, being tangible assets. The word 'plant' is defined in Section 43 (i), which provides for definitions for the words and expression used in Section 28 to 41 falling in same Chapter-IV-computation of business income. The word 'plant' is defined in Section 43 (3) as follows:- "(3) "plant" includes ships, vehicles, books, scientific apparatus and surgical equipment used for the purpose....
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....at the investment allowance had been granted on such items in the earlier years. The AO's order has not discussed this issue. In this view of the matter, the reasons given by the Department for not granting investment allowance is clearly erroneous and the Tribunal was right in directing the ITO to allow investment allowance on calculators for the year 1979-80 and factory cleaning machines for the asst. yr. 1980-81. The said issue is, therefore, answered in the affirmative and in favour of the assessee. The issue raised by question No. 4 is whether the Tribunal was right in law in failing to allow investment under Section 32A of the Act on canteen equipment and water coolers having failed to appreciate that these items are also pl....
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.... well including its machinery and building would be used for the purpose of business or profession would fall within the definition of word 'plant' and on which depreciation would be allowed under Section 32 (1) of the Act. The question is decided in favour of the assessee and against the department. Question No.7 Whether on the facts and circumstances of the case, the Hon'ble Tribunal was legally justified in upholding the order of CIT (A), who allowed deduction of Rs. 5,80,92,160/- being receipt on account of extra sale price realized on sale of sugar in open market out of levy quota while Hon'ble Allahabad High Court vide its order dated 5.3.2003 decided the issue in favour of Revenue? The question is covered by ....