TaxTMI 
TaxTMI 
2015 (3) TMI 94
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....uestions 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 against the revenue. Question No.2:- Whether on the....
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....estion 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 the case the Hon'ble Tribunal was legally justified in upholding th....
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....g 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 purposes of the business or profession (but does not include tea bushes or livestock) (or buil....
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....;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 plant and machinery. The AO has held that water coolers are in the nature of furniture and fixtur....
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....n 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 the judgment in CIT v. Ponni Sugar and Chemical Ltd., (2008) 306 ITR 392 (SC) and CIT v. Kisan Sahkari ....