1986 (2) TMI 136

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..... 35(2)(ia) of the Income-tax Act, 1961 ('the Act'), in respect of the following items : (i) Cost of Bauer-Mc Nett Fibre Classifier installed at Karur Unit Rs. 1,36,993 (ii) Cost of dust control equipment installed at Arkonam Unit Rs. 1,29,633 . Rs. 2,66,626 According to the assessee, these equipments had been purchased for scientific research. The ITO observed that they were merely imported equipments used for control of dust pollution in the factories and so their cost could not be classified as expenditure on scientific research relating to the business of the assessee. He, therefore, disallowed the claim of the assessee. 3. On appeal, the Commissioner (Appeals) partly allowed the cl .....

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..... urse, disallow the normal depreciation granted by him in respect of this equipment. 14. Coming to the expenditure incurred at Arkonam unit, the assessee acquired the dust control equipment which indicates the level of asbestos dust per cubic metre of atmosphere inside the factory. If the dust contained in the atmosphere exceeds the tolerance level, the assessee douches the factory premises with water to reduce floating dust particles. In my opinion this is an equipment which has to be necessarily installed in every cement factory and asbestos factory to prevent health hazards. The equipment installed by the assessee at Arkonam is part of the normal plant and machinery which the assessee is bound to instal. It is not any scientific apparat .....

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..... r' will not, in our opinion, amount to scientific research. 6. Similar is the position as regards the 'dust control' equipment. The assessee is not engaged in any scientific work or discovering new methods for reducing the impact of dust pollution. The 'dust control' equipment used by the assessee simply indicates the level of asbestos dust and if the dust contained in the atmosphere exceeds the tolerance level, the assessee douches the factory premises with water to reduce floating dust particles. These activities do not, in our opinion, amount to any 'scientific research' carried on by the assessee which may lead to or facilitate the extension of its business. 7. We, therefore, conclude that the assessee is not entitled to claim relie .....

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