2002 (5) TMI 27

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.... Tribunal was correct in law in holding that depreciation on a vehicle which is not registered in the name of the assessee was an allowable deduction in the hands of the assessee?" The basic facts of the matter as have been stated by the Tribunal are as follows: "2. The assessee is a company engaged in the manufacture of sugar and having two units, one at Basti and the other at Waltergang a few kilometers away from Basti. The relevant assessment year is 1976-77 and the previous year ended on April 30, 1976. 3. During the year under consideration the assessee claimed deduction in the profit and loss account a sum of Rs.12,300 on account of pension paid to Smt. Satwant Narang, wife of the late Shri Des Raj Narang, who was a brother of Shr....

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....he present application of the Revenue also. 8. During the course of the assessment proceedings, the Income-tax Officer objected to the consumption of the lubricants in the Basti and Waltergang units. According to the Income-tax Officer, the value of lubricating oil consumed by the assessee at the Basti unit Rs.137 per qtl. was excessive compared to Rs.69 per hundred litre last year. Having regard to the production during the year, the Income-tax Officer was of the view that the expenditure claimed was excessive. He, therefore, recalculated the allowable expenditure on this account at Rs.55 per hundred litre and disallowed Rs.80,419 out of Rs.1,34,222. Similarly, he made objections in the Waltergang unit and disallowed Rs.1,25,000 out of Rs....