COMMISSIONER OF INCOME TAX Vs. MADRAS CEMENTS LIMITED

JUDGEMENT

(1.) THE following three questions have been referred to us at the instance of the Revenue for the assessment year 1983-84.

(2.) WHETHER, on the facts and in the circumstances of the case, the Tribunal erred in not holding that the expenditure incurred by the assessee on the provision of common facilities in the employees' lay-outs such as laying of roads, fixing of street lights, providing wells and the like, is a capital expenditure and hence is not eligible for deduction in computing the total income ?

(3.) IN the result, all the three questions are answered in favour of the assessee and against the Revenue.