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TMI Blog1969 (6) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... id by the assessee in the relevant previous years was allowable as a deduction under section 10(2)(xv) of the Indian Income-tax Act, 1922 ? " This question has to be answered in the negative in view of the Supreme Court judgment in Travancore Titanium Products Ltd. v. Commissioner of Income-tax. The next question runs thus : " Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the sum of Rs. 36,000 should be treated as part of the actual cost to the assessee of the new machinery acquired by it for the purpose of allowance of development rebate under section 10(2)(vib) of the Income-tax Act, 1922 ? " Now, the relevant provisions of section 10 are as follows : 10. (1) The tax shall be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal has held in favour of the assessee. Mr. D. K. Sen, learned counsel for the department, drew our attention to the judgment of this court in Commissioner of Income-tax v. Standard Vacuum Refining Co. of India Ltd. In this case, the assessee borrowed monies on debentures in June, 1953, interest to run from that date, and utilized the amount along with other monies financed by it for setting up a refinery which started work on September 1, 1954. All expenses incurred during the period of construction including a sum of Rs. 23,53,284 being the interest which had accrued on the said debentures from the date of the borrowing to the date of commencement of the business were capitalised and depreciation on the full amount was claimed. This cou ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the expression ' actual cost to, the assessee' as used in sub-section (5) of section 10 of the Act would be what the assessee has, in fact, expended or laid out for the purpose of acquiring the depreciable assets." The Calcutta High Court in Commissioner of Income-tax v. Lothian Jute Mills Co. Ltd. , at page 636, has stated : It would therefore appear that in using the expression 'actual cost to the assessee' the legislature wanted to indicate the sum of money or money's worth which it cost the assessee to acquire the asset. In special cases, however, the legislature indicated that the 'actual cost to the assessee ' might be determined at some other figure." The word 'actual' means, according to the Oxford Dictionary, 'existing in act o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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