1997 (7) TMI 38

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ting to the assessment year 1975-76 for the opinion of this court under section 256(2) of the Income-tax Act, 1961 (briefly, the Act) : "Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in holding that a sum of Rs. 60,000 spent on resurfacing the road within the factory premises was allowable as revenue expenditure?" The facts, in brief, are that t....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ing a part of the factory building, the assessee was entitled to depreciation. The Appellate Assistant Commissioner, therefore, directed the Income-tax Officer to allow the depreciation. Aggrieved, the assessee carried the dispute further in appeal before the Appellate Tribunal, which has recorded its findings as follows : "In our view, this merely reflected the expenditure on refurnishing a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tion has arisen. An existing inefficient subsidiary part of the factory premises has been repaired and brought into a condition of normal efficiency. In this view of the matter, we direct allowance of the claim of Rs. 60,000 as revenue expenditure." In Lakshmiji Sugar Mills Co. P. Ltd. v. CIT [1971] 82 ITR 376, the Supreme Court held that the expenditure incurred under a statutory obligation fo....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....il Mills (P.) Ltd. v. CIT [1980] 125 ITR 293 (SC), following its earlier decision in Lakshmiji Sugar Mills Co. P. Ltd. v. CIT [1971] 82 ITR 376 (SC), the Supreme Court held that the construction of the roads facilitated the business operations of the assessee and enabled the management and conduct of the assessee's business to be carried on more efficiently and profitably. It was true that the adv....