1989 (3) TMI 51

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..... and undertakes manufacturing of pipes and tubes. The assessee, along with three other pipe manufacturing companies, constructed a railway platform at a grid siding at Hissar for carrying out its business activities in a profitable and advantageous manner. The assessee-company had contributed Rs. 43,333 in doing so. In the relevant assessment year 1981-82, the assessee claimed the amount of Rs. 43 .....

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..... ourt allowed the deduction of the contribution made by the assessee to meet the cost of construction of a road after recording a finding that the road was advantageous to the business of the assessee as it facilitated the transport of sugarcane to the factory and the outflow of manufactured sugar from the factory to the market centres, and the expenditure was considered on revenue account. In CIT .....

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..... inion that they do not lay down the correct law in view of the aforesaid Supreme Court decisions. Accordingly, we prefer to follow the Supreme Court decisions and the decision of this court in coming to the conclusion that the amount spent by the assessee on the construction of a railway platform was for carrying on its business activities in a profitable way which was advantageous to the assessee .....

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