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Issues:
1. Disallowance of claim for depreciation on the purchase of a pedestal fan. 2. Rejection of claim for deduction of expenditure on a brochure regarding the enterprises of the Murugappa group. Analysis: 1. The High Court of Madras addressed the issue of disallowance of depreciation claimed by the assessee for the assessment year 1984-85 on a pedestal fan purchase. The Tribunal rejected the claim based on the grounds that the claimed amount equaled the acquisition cost of the asset. However, it was undisputed that the fan was used for business purposes. The court referred to Section 5(f) of the Tamil Nadu Agricultural Income-tax Act, 1955, which deals with depreciation. The court highlighted the third proviso under Section 5(f), stating that deductions should not exceed the original cost of the asset. The court further discussed Rule 4(1) of the Tamil Nadu Agricultural Income-tax Rules, 1955, which prescribes deductions for depreciation in line with the Indian Income-tax Act, 1922, even though it was repealed and replaced by the Income-tax Act, 1961. The court concluded that the assessee was entitled to 100% depreciation on the fan as its cost was below Rs. 5,000, in line with Section 32(1)(ii) of the Income-tax Act, 1961. 2. The court also addressed the rejection of the claim for deduction of the expenditure incurred on a brochure for the Murugappa group. The Tribunal disallowed this claim, and upon reviewing the brochure, the court agreed with the Tribunal's decision. The court found that the cost of the brochure did not contribute to the business of the assessee. Consequently, the court partially allowed the revision, granting depreciation for the fan but upholding the disallowance of the expenditure on the brochure. The court did not award any costs in this matter.
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