TaxTMI 
TaxTMI 
2009 (3) TMI 10
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.... the ITO will recompute the disallowance under Rule 6D by aggregating the expenditure of all tours in place of the present computation of the disallowances made by the ITO on the basis of each trip of the employees? 2. Whether on the facts and in the circumstances of the case, the Appellate Tribunal was justified in upholding the order of the Commissioner of Income tax (Appeals) that the addition of Rs.55,27,000/- on account of duty drawback and cash assistance on accrual basis was not justified? 3. Whether on the facts and in the circumstances of the case, the Appellate Tribunal was justified in upholding the order of the Commissioner of Income tax (Appeals) that the assessee is entitled for depreciation on canteen building at the hi....
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....under. "But, whatever expression we might employ to describe the culinary process, there is no doubt whatever that the use of fuel and other forms of energy in that part of the canteen, would have the same damaging effect on the life of the building as a regular manufacturing process would by the use of plant of machinery. These considerations definitely point to the conclusion that a canteen building is, in the proper sense of the term, a factory building for the purpose of depreciation allowance.." 5. The Judgment of the Madras High Court was followed by the Karnataka High Court in the case of Commissioner of Income Tax, Karnataka-I, Bangalore Vs. Motor Industries Company Ltd. reported in 158 ITR 734 and both these judgments were ag....
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....clusion is made for canteens. If canteens were meant to attract the lower depression applicable to general buildings, then it would have been specifically excluded from the term factory buildings as appearing in Appendix-I Part-1(i)(2). We therefore, answer this question in the affirmative and in favour of the assessee. 6. As regards Question No.4 both sides agree that the same is covered by the decision of this court in the case of CIT Vs. Mafatlal Fine Spinning and Manufacturing Co. Ltd. reported in 263 ITR 140. On perusing the said judgment and following the same, we answer the question in the negative and against the assessee. 7. As regards Question No.5 it would be useful to reproduce Section 37(3) (A) and 3(B) which were in forc....
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....d under sub-section (2B) or sub-section (3) : (b)"turnover" and "gross receipts" means turnover or gross receipts, as the case may be, as reduced by any discount or rebate allowed by the assessee. 3(B) Nothing contained in sub-section (3A) shall apply in relation to any expenditure incurred by an assessee on- (i) advertisement in any small newspaper; (ii) advertisement in any newspaper for recruitment of personnel;............" It was sought to be contended that Section 37(3B)(ii) provided that the benefit to be conferred under Section 37(3A) would not apply to expenditure incurred by the assessee on an advertisement in a newspaper for recruitment of personnel. In the present case the advertisement was given for appointment o....