TaxTMI 
TaxTMI 
2002 (9) TMI 19
X X X X Extracts X X X X
X X X X Extracts X X X X
....hout considering whether it included any expenditure on drivers' salary and the like which is disallowable under section 37(3A)?" The facts from which the abovesaid question arose are as follows: The assessee is a company engaged in the business of transportation of goods. For the assessment year 1984-85, the assessee-company debited in the profit and loss account a sum of Rs. 13,17,723 under section 37(3A). The said expenses included car running expenses of Rs. 2,62,532 comprising of fuel, lubricants and motor vehicle tax. The Assessing Officer made an estimation of an equal amount to the car running expenses and arrived at a figure of Rs. 5,25,000. The addition was made on the ground that the assessee did not take into account expenditu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nnection, we may refer to the dictionary meaning of the expressions 'repairs' and 'maintenance'. As per Black's Law Dictionary (fifth edition), 'repair' means 'to mend, remedy, restore, renovate. To restore to a sound or good state after decay, injury, dilapidation, or partial destruction'. Whereas the meaning of the expression, 'maintenance' is 'act of maintaining keeping up, supporting....' From the dictionary meaning of these two expressions it is very clear that the expression 'repair' presupposes certain injury or partial destruction. But the expression 'maintenance' does not do so. It means to keep a particular thing in its similar state." In respect of inclusion of driver's salary under section 37(3A), the point is covered by the de....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ision as a separate industrial undertaking eligible for deduction under section 32A of the Income-tax Act, 1961?" The facts in respect of the first of the above three questions are that during the accounting year ended on March 31, 1984, the assessee paid a sum of Rs. 26,729 out of which a sum of Rs. 22,034 has been paid towards postage, telegram, telephone, etc., and a sum of Rs. 4,695 has been paid as rates and taxes. The assessee-company in its accounts treated them as prepaid and showed it as an asset in its balance-sheet. However, the payments were made in pursuance of demands raised by the postal, telephone and telegraph departments, etc., the same was claimed as a deduction in computing the income from business. The Assessing Office....
X X X X Extracts X X X X
X X X X Extracts X X X X
....l expenditure incurred has to be allowed notwithstanding the method of accounting the assessee followed. Hence, the first question is answered in favour of the assessee and against the Revenue. Questions Nos. 2 and 3 can be considered together. The issue is related to the assessment year 1985-86. The facts as stated in the statement of case are as follows: The assessee is a company carrying on business in goods carriage besides deriving income from investments and data processing, etc. During the relevant previous year, the assessee acquired and installed for its business purposes a fourth generation computer, costing Rs. 32,79,520 in the aggregate and claimed investment allowance of Rs. 8,19,380. The Assessing Officer negatived the asses....