1997 (3) TMI 92 - SC - Income Tax

Summary

Issues involved: Delay in filing special leave petition, revenue deduction on expenditure for construction of metal roads, entitlement to depreciation on cost of construction of metal roads.

Delay in filing special leave petition: The Supreme Court condoned the delay of seven days in filing the special leave petition, as no order was passed on the application for condonation of delay initially.

Revenue deduction on expenditure for construction of metal roads: The High Court, relying on a previous decision, held that the expenditure incurred by the assessee towards construction of metal roads on trenching grounds was not a revenue expenditure. The roads were constructed for specific purposes related to waste disposal and transportation, and were not considered as standalone "buildings."

Entitlement to depreciation on cost of construction of metal roads: The High Court determined that the roads constructed by the assessee could not be classified as "buildings" for the purpose of claiming depreciation. The Supreme Court agreed with this view, emphasizing that the roads were essential for the business operations but did not constitute separate buildings.

Conclusion: The appeal was dismissed by the Supreme Court, as it found no merit in the arguments presented by the assessee. The decision of the High Court regarding the nature of the expenditure and the classification of the constructed roads was upheld. No costs were awarded in this matter.