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TMI Blog2006 (9) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... 20,642 on silver items presented to the engineers in appreciation of installation of a new unit was allowable as business expenditure? (ii) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in allowing investment allowance on air-conditioner, water-cooler and weighing bridge? (iii) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in deleting the disallowance under section 43B of the Act made by the Assessing Officer by holding that the liability of Rs. 74,010 was allowable if the payment was made before the due date prescribed under section 139(1) of the Act?" The facts noticed in the order of the Tribunal are that the assessee claimed deduction of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of disallowance of Rs. 20,642. The Tribunal also upheld the claim for investment allowance on air-conditioner, water-cooler and weighing bridge, following its view taken in other cases. We have heard learned counsel for the parties and perused the record. We proceed to answer the questions referred as under: Question No. (i) As regards question No. (i), we find that the Tribunal has recorded a finding in paragraph 17 of its order to the following effect: "17. After carefully considering the submissions of both the parties, we are of the opinion that the expenditure has to be treated as business expenditure because otherwise there was no relationship between the assessee-company and the engineers of M/s. Siemen Company. It was only a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... certain accessories may be required. Thus, it would be the entire machinery including the accessories and other equipment which can be said to have been installed for the purpose of business of manufacture of an article or thing. This view finds support from the decision of the Calcutta High Court in CIT v. Tribeni Tissues Ltd. [1994] 206 ITR 92, wherein it was held that all machinery and equipment that is necessary to make the assessee's manufacturing unit in the state of operational integration pertain to its manufacturing process, because there could not be any manufacture unless this operational integration was achieved after installation of the plant and the plant goes operational. It was further held that any machinery or plant having ..... X X X X Extracts X X X X X X X X Extracts X X X X
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