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TMI Blog2001 (7) TMI 34X X X X Extracts X X X X X X X X Extracts X X X X ..... the Income-tax Act, 1961, the Tribunal has referred following question, set out at page 2 of the paper, book for our opinion: "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in directing the Assessing Officer not to take into account the sum of Rs.4,45,305 being expenditure on repair of motor cars for computing the disallowance under section 37(3A)/( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igh Court in the case of CIT v. Chase Bright Steel Limited (No. 1) [1989] 177 ITR 124, and the decision of the Delhi Bench of the Tribunal published in Enkay (I.) Rubber Co. (P.) Ltd. v. IAC [1992] 40 ITD 114. Following the view taken by the Bombay High Court, the Tribunal held that the expenses relating to repair of motor cars are covered by section 31 and, therefore, did not come within the ambi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore, there is no need to go for the deduction under section 37(1) of the Income-tax Act and when the expenditure is not allowed under section 37(1), the provisions of section 37(3A)/(3B) are not attracted for any disallowance. He placed reliance on the decisions of this court in the cases of CIT v. Orient Paper and Industries Ltd. [1995] 214 ITR 473; CIT v. Tungabhadra Industries Ltd. [1994] 207 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpenditure on repair is directly covered by the decision of this court in the case of Orient Paper and Industries Ltd. [1995] 214 ITR 473, we find no reason to interfere in the order of the Tribunal.
In the result, we answer the question in the affirmative, i.e., in favour of the assessee and against the Revenue.
The reference so made is accordingly disposed of. X X X X Extracts X X X X X X X X Extracts X X X X
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