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TMI Blog2006 (1) TMI 101X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal was right in holding that section 37(3A) had no application in the case of expenditure incurred for repairing car and the premium paid for the insurance. - - - - - Dated:- 27-1-2006 - Judge(s) : P. VISHWANATHA SHETTY., N. KUMAR. JUDGMENT The judgment of the court was delivered by N. Kumar J.- The Income-tax Appellate Tribunal has referred the following question of law under section 256(2) of the Income-tax Act, 1961 (for short "the Act") at the instance of the Revenue for the opinion of this court: "Whether on the facts and in the circumstances of the case, the hon'ble Tribunal was right in law in holding that the expenses of repairs and insurance on running and maintenance of cars were not covered by the provisions o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act and therefore, not deductible for the purpose of disallowance. We do not find any merit in the said submission. Section 31 of the Act, which is applicable to the case on hand, reads as under: "31. Repairs and insurance of machinery, plant and furniture.-In respect of repairs and insurance of machinery, plant or furniture used for the purposes of the business or profession, the following deductions shall be allowed- (i) the amount paid on account of current repairs thereto; (ii) the amount of any premium paid in respect of insurance against risk of damage or destruction thereof. Explanation.- For the removal of doubts, it is hereby declared that the amount paid on account of current repairs shall not include any expenditure in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpenditure as running and maintenance of aircraft and motor cars. The deduction in respect of the expenditure incurred on repairs and insurance of a motor car which is a plant as defined in section 43(3) of the Act is allowed under section 31 of the Act and not under section 37. The expenditure in respect of which sub-section (3A) could be attracted is only that which falls under section 37 and not under section 31. Section 37(1) deals with only such expenditure which does not fall within sections 30 to 36 of the Act. Accordingly, the expenditure incurred on repairs and insurance of motor cars cannot be considered for disallowance under sub-section (3A) of section 37 of the Act. In the case of CIT v. A.V. Thomas and Co. Ltd. [1997] 225 IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... spect of which sub-section (3A) could be attracted is only that which falls under section 37 and not under section 31. A car is a vehicle. It is a "plant", in view of the inclusive definition contained in clause (3) of section 43 of the Act. Section 31 of the Act, specifically deals with repairs and insurance of machinery, plant and furniture. Thus, the residuary provision section 37 is excluded. The deduction in respect of the expenditure incurred on repairs and insurance of a motor car is allowed under section 31 of the Act and not under section 37. The expenditure covered by section 31 relates to repairs and premium paid in respect of insurance of cars, whereas what was contemplated under section 37(3B) is expenditure incurred on running ..... X X X X Extracts X X X X X X X X Extracts X X X X
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