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TMI Blog2001 (6) TMI 696X X X X Extracts X X X X X X X X Extracts X X X X ..... nt Member. The appeal by the revenue is directed against the order dated 31-7-1998 of the CIT(A), Central III, Bombay pertaining to the assessment year 1985-86. 2. The revenue has taken the following two substantive grounds - "(1) On the facts and in the circumstances of the case and in law, the learned CIT (Appeals) erred in directing the Assessing Officer to allow depreciation and inve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Assessing Officer. 3. On appeal, it was contended that the assessee had to stop manufacturing operations from November 1983 as a result of lock out in the plant of M/s. National Rayon Corporation, the sole supplier of hydrogen to the assessee company. Since the hydrogen was the main raw material which was not available no manufacturing activity could be carried on during the year. Nonethele ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iness activity was of temporary nature because of lock out in the plant of the supplier of raw material and production commenced again in March, 1985 when the lock out was lifted. According to the CIT(A) the temporary break in the manufacturing activity did not amount to cessation of business. The revenue is aggrieved. 4. We have heard the arguments advanced by the ld. representatives of the par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder repair during the relevant assessment year. Those trucks had been used for the business of the assessee in earlier as also later years. On these facts their Lordships held that the trucks continued to be in use in the business of the assessee even though the same were under repairs. In CIT v. Vayithri Plantations Ltd. [1981] 128 ITR 675 (Mad.) it has been held that so long as the machinery is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have heard the arguments advanced by the ld. representatives of the parties. In a number of cases it has been held that the expenditure on motor cars in respect of repairs and taxes specifically fall under sections 30 31 and, therefore, following the decision in CIT v. Chase Bright Steel Ltd. [1989] 177 ITR 124 (Bom.) such expenses cannot be considered for disallowance under section 37(3A). In t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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