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TMI Blog2008 (3) TMI 723X X X X Extracts X X X X X X X X Extracts X X X X ..... ciation provided @ 5 per cent and 10 per cent for non-factory and factory buildings respectively? 2. in law that generator was a renewable energy device as per Item (xiii) to cl. (10A) of III-D of Appendix-I of r. 5 and consequently depreciation @ 30 per cent was admissible? 3. in holding that dismantling of boundary wall and reconstruction thereof does not bring any new asset in existence and consequently expenditure incurred on reconstruction of boundary wall was a revenue expenditure? 4. in directing to exclude driver's salary, depreciation on car and, repairs of car for computing disallowance under s. 37(3A)/(3B) of IT Act, 1961? 2. The necessary facts are, that the assessment order was made for the asst. yr. 1984-85 on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ailable to us from the order of the learned Tribunal, or the learned CIT(A), we have heard learned counsel for either side, on the merits of the admissibility of depreciation on the administrative block also @ 10 per cent. So far factual part is concerned, it is not in dispute, that the entire establishment, viz. the actual building, wherein the factory is operated, and the said administrative block, is in one campus only. Then in that view of the matter, we have gone through certain judgments, with the assistance of learned counsel for the parties, and find, that identical controversy did come up before different High Courts of the country, being High Courts of Bombay, Calcutta, and Madras, and examining the controversy, with respect to di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , propounded by the Madras High Court in the above judgment, being, that the question is required to be considered by approaching the question from functional point of view. 6. In the present case, the entire cluster is a one campus, and as has come in the impugned orders, it is spread over to 30 to 35 sq. meters, and it is not shown, that functionally the administrative block building is not for the purposes, as are required to be considered for the purpose of considering it as a factory building, as considered in the above judgments of Calcutta, Bombay, and Madras High Courts. 7. It could be understood that the administrative block would have been situated at a different, or distant place, wherefrom only administrative control was b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed depreciation at the rate of 30 per cent. On the basis of entry III-D, item (10A), cl. (xiii) of Appendix-I to the IT Rules, 1962. 9. No contrary judgment has been cited on the side of the Revenue, and it is not shown, that this matter was further carried to Hon'ble the Supreme Court, or that this judgment does not hold good. 10. In view of the said judgment in Agarwal Transformers' case, this question No. 2 is also, accordingly, answered against the Revenue, and in favour of the assessee, and it is held that according to item (xiii) clause (10A) of III-D of Appendix-I, 30 per cent depreciation would be applicable in case of generator. 11. The third question relates to admissibility of expenditure incurred in reconstruct ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s held to be a 'revenue expenditure', an allowable deduction. Then there is a judgment of Calcutta High Court, in CIT vs. B.V. Ramachandrappa Sons [1991] 97 CTR (Kar.) 180 : [1991] 191 ITR 34 (Kar.), where precisely the boundary wall was replaced, inasmuch as, earlier existing barbed wire fencing around the compound was replaced by compound wall, apart from other works undertaken, being thatched roof of shed was removed, and asbestos sheets put in its place, and all that was held to be admissible as revenue expenditure. Then the glaring case is, that in CIT vs. Rajasthan SPG. WVG. Mills Ltd. [2004] 189 CTR (Raj.) 539 :[2005] 272 ITR 487 (Raj.). In that case, the assessee company was engaged in business of manufacturing of differ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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