COMMISSIONER OF INCOME TAX Vs. OOTY DASAPRAKASH

JUDGEMENT

(1.) THESE reference applications, at the instance of the Commissioner of Income-tax, Tamil Nadu-III, Madras, are for issuance of a direction to the Tribunal to state a case and refer the common question of law for the opinion of this court, as below, for the three assessment years 1985-86, 1986-87 and 1987-88 :

(2.) "Whether, on the facts and in the circumstances of the cases, the Tribunal was right in holding that the expenditure incurred by the assessee in substantially replacing the old building, during the previous years relevant to the assessment years 1985-86, 1986-87 and 1987-88 is allowable as current repairs under section 31(1) or under section 37 of the Income Tax Act, 1961 ?"

(3.) THE issue falling for consideration in the question under reference is as to whether the expenditure incurred by the assessee for the relevant assessment years is one falling under "capital expenditure" and consequently not allowable as a deduction or falling under "revenue expenditure" and therefore to be allowed as a deduction under section 31(1) or section 37 of the Income Tax Act.