TaxTMI 
TaxTMI 
2005 (3) TMI 81
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....ning to the assessment year 1985-86: "1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law to hold that car repairs and insurance are to be excluded for the purpose of working out disallowance under section 37(3B)?" Briefly stated, the material facts are as follows: The respondent-assessee is engaged in the business of manufacture and sale of iron and steel products. During the course of assessment proceedings for the aforementioned assessment year, the Income-tax Officer noticed that in its total income, the assessee had added Rs. 32,444 as income being the amount of disallowance under section 37(3B) of the Act. The Income-tax Officer was, however, of the view that the expenses added bac....
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....enses incurred in connection with the maintenance of motor cars. It is asserted that the non obstante clause in section 37(3A), would include the provisions contained in section 31 of the Act and, therefore, the provisions of section 37(3A) are clearly attracted in the case of the assessee. Learned counsel for the assessee, on the other hand, has urged that the expenditure allowable under section 31 of the Act cannot be disallowed under any of the provisions of the sub-sections of section 37 of the Act. In order to appreciate the rival contentions, it would be necessary to refer to the relevant provisions of law. Section 31 of the Act reads as follows: "Repairs and insurance of machinery, plant and furniture.- In respect of repairs and in....
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....forenoted provisions, it is clear that the expenditure incurred on repairs and insurance of the plant used for the purposes of the business, falls within the ambit of section 31. The word "plant" is defined in section 43(3) of the Act and it includes vehicles. Section 37 of the Act is a general provision regarding the expenditure not covered by sections 30 to 36 and 80W of the Act and not being in the nature of capital expenditure or personal expenses of the assessee. It is, thus, clear that section 37(1) of the Act is intended to take within its ambit only such expenditure which is not covered by sections 30 to 36 and section 80VV of the Act. Section 37(3A) of the Act provides that notwithstanding anything contained in sub-section (1), 20 ....