1980 (9) TMI 38

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....DHILLON J.-The following questions of law have been referred to this court for its opinion at the instance of the revenue: " (1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in allowing depreciation at the rate of 15% on the ice plant machinery valuing Rs. 3,84,132 during the assessment year 1970-71 ? 2. Whether, on the facts and in the circumstan....

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....manded by the said Corporation from the assessee. In his assessment for the assessment year 1970-71, the assessee claimed a deduction of Rs. 38,218 on account of the said interest. The ITO disallowed the claim to the extent of Rs. 24,538 on the ground that the entire loan on which interest was claimed was not for the purposes of the assessee's business. The ITO calculated interest on a sum of R....

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....ly contended that the plant owned by the assessee in the present case is not covered by the term " refrigeration plants " and thus this entry is not relevant for that purpose. This view was taken by the AAC and the Appellate Tribunal rightly reversed this view. We find that the Tribunal has elaborately discussed the connotation of the word " refrigeration " Reference has also been made to Webster'....

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....s regards the second question, it may be observed that the ITO also allowed interest to the assessee, but at a lower figure of the amount, as according to the ITO only that much capital was invested in the business of the assessee. The revenue did not challenge this finding of the ITO. The contention of Mr. Awasthy, learned counsel for the revenue, that in cases where the machinery has been purcha....