LAWS(MPH)-1984-6-11

PERMALI WALLACE LIMITED Vs. COMMISSIONER OF INCOME TAX

Decided On June 27, 1984
PERMALI WALLACE LIMITED Appellant
V/S
COMMISSIONER OF INCOME-TAX Respondents

JUDGEMENT

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

(2.) THE facts giving rise to this reference as per the statement of facts furnished by the Tribunal are as under :

(3.) ON an appeal filed by the assessee, the Commissioner of Income-tax (Appeals) confirmed the disallowance of both these items. Against the said decision of the Commissioner of Income-tax (Appeals), the assessee filed a second appeal before the Tribunal before which it was contended that the expenditure on "repairs was revenue expenditure being in the nature of current repairs. The Tribunal allowed the expenditure of Rs. 2,050 on replacement of A.C. sheets and Rs. 7,801 out of labour charges. In other words, the sums of Rs. 34,234, Rs. 52,200 and out of labour charges a sum of Rs. 4,000 were disallowed as of capital nature and the Tribunal rounded off the amount to Rs. 90,000. Hence, this reference.