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TMI Blog1980 (5) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... revenue expenditure observed that the assessee did not undertake ordinary repairs only but re-plastered the entire tank and thus started enjoying enduring advantage by replastering of the tank afresh. He, therefore, held 50 per cent of Rs. 9500 spent on the said repair i.e. Rs. 4750 as capital expenditure. The assessee appealed against this disallowance contending that the claim would fall under current repairs and that no advantage of an enduring nature has been acquired by effecting such repairs. The AAC, however, sustained the disallowance stating that only Rs. 4750 for estimated capital expenditure would be considered to be justified. 3. The assessee's representative contended before us that keeping in view the cost of construction of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t instead of 55 per cent of the income assessed. A copy of the grounds taken before the AAC has been filed by the assessee before the Tribunal along with the appeal. Ground No. 5 therein reads "that the computation of tax is excessive and contrary to the provisions of law". On going through the order of the AAC we find that this ground has not been dealt with or disposed of. The second ground of appeal before us is, therefore, admitted and we direct the AAC to consider ground on. 5, raised by the assessee before the AAC and dispose of the same on merits. 7. The third ground raised is of a general nature and calls for no discussion. 8. The assessee has raised before us an additional ground that the AAC erred to confirm addition of Rs. 12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e more cold storage in the vicinity; that there had been keen competition among the cold storage in the vicinity in the later years; that it was necessary in order to face the competition to appoint a working Director. Shri Mool Chand Garg is highly qualified and he had been looking after the account side and by that appointment the business increased and thus the remuneration paid to him at Rs. 1,000 per month is justified and reasonable. 10. The departmental representative while supporting the order of AAC pointed out that the Managing Director who had several years of experience was being paid Rs. 1000 per month and that the disallowance made by the AAC in the case of the working Director is, therefore, reasonable. 11. The reasonable ..... X X X X Extracts X X X X X X X X Extracts X X X X
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