RATLAM BONE MILLS Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) BY this reference under Section 256 of the I.T. Act, 1961 (hereinafter referred to as "the Act"), the Income-tax Appellate Tribunal, Indore, has referred the following questions of law to this court for its opinion :

(2.) THE material facts giving rise to this reference briefly are as follows:

(3.) AS regards question No. 2, the Tribunal has found that as a result of the expenditure on renovation of the factory building to the extent of Rs. 34,245, there was substantial improvement of the property. This finding is based on the material on record. In view of this finding, the Tribunal was justified in holding that the said expenditure was capital in nature. Therefore, our answer to question No. 2 is in the affirmative and against the assessee.