9911796707
TMI Blog1980 (1) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... iciary taken as a revenue expenditure in computing the total income for the asst. yr. 1975-76 corresponding to the previous year ended 31st March, 1975. 2. The ITO found that the Dust Extraction Units consisted of electric motors, fans, dust chamber and suction pipes which were attached to the Carding Machines for the purpose of collecting the fluff which may float when the Carding Machines was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts but were only accessories the assessee did not derive any enduring benefit. The assessee also relied upon the decision of the Madras High Court in the case of CIT, Madras vs. Mahalakshmi Textile Mills Ltd (1). The CIT (A), however, found that though they were attached to the Carding Machines they were independent devices and since they did not replace any old or worn out parts, the expenditure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore actually replaced acquisition expenditure on manual cleaning which was the Revenue expenditure. In addition it was submitted that this reduced the health hazard by inhalation of the fluff as well as other hazards in manual cleaning and the expenditure should therefore beneficiary allowed as having been incurred for the welfare of the workers and safe operation of the machines. It was further p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a careful consideration of the rival submissions we are of the opinion that the assessee is entitled to succeed. Undisputedly the machines in question were accessories to the Carding Machines. They have been designed to extract the dust arising out of the operation of the Carding Machines and could therefore be operated only in conjunction with the Carding Machines and not independent of it. Yet t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y. This expenditure therefore is in lieu of revenue expenditure incurred for manually removing the dust. This expenditure also involves safely and removal of health hazard of the workers. Except for these two benefits the assessee derives no enduring benefit of increase in production of the efficiency of the Carding Machine as such. Taking these circumstances it is very clear that this expenditure ..... X X X X Extracts X X X X X X X X Extracts X X X X
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