1999 (8) TMI 53

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....er section 256(1) of the Income-tax Act, 1961, the Income-tax Appellate Tribunal has referred the following question of law to this court for opinion, at the instance of the assessee : "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in holding that the expenditure incurred on asphalting the existing kaccha road within the factory b....

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....ast for a long time. The Inspecting Assistant Commissioner of Income-tax held that the assessee had substantially renovated the roads and hence the expenditure can be classified as a capital expenditure. According to him, the life of these roads would be much more than what was stated by the assessee. He, therefore, held that the expenditure was a capital, expenditure. He allowed depreciation at t....

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....ring nature. The Tribunal, therefore, held that the expenditure was not a revenue expenditure and confirmed the disallowance. It is against this background that the present reference is filed. We have heard Mr. P. Vaidya, learned counsel for the assessee, and Mr. R. V. Desai and Mr. P. S. Jetley, learned counsel for the Revenue. Learned counsel for the parties are agreed that the present contro....