COMMISSIONER OF INCOME TAX Vs. MYSORE CEMENTS LIMITED

JUDGEMENT

(1.) THIS is a reference under section 256(1) of the Income-tax Act, 1961, arising out of assessment proceedings for the assessment year 1978-79.

(2.) THE questions required to be answered by us are:

(3.) THE assessee claimed this sum as part of quarry maintenance expenditure, though incurred towards the constriction of the quarters for the workers at the quarry. THE assessing authority, following the decision of the Appellate Assistant Commissioner (issued under section 144B of the Act), held it to be capital expenditure and hence the claim for deduction was disallowed; however, he allowed depreciation on it.