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TMI Blog1985 (3) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... ion due to the foreign owners of the transport undertakings which had been nationalised and given to the assessee-corporation should be allowed as a revenue expenditure ? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the buildings located in the bus terminus and which were used only for parking vehicles and to carry out repairing operations, should be treated as 'factory buildings' and accordingly depreciation at 10% should be allowed thereon ? " The assessee in this case is a Government-owned transport corporation. For the assessment year 1977-78, the assessee claimed, inter alia, deduction of a sum of Rs. 1,49,379 being the interest payable on the compensation due to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on was an allowable revenue expenditure holding that even though the compensation may be of a capital nature, the interest that was paid after the inception of the business must be considered as a revenue expenditure. The Tribunal also agreed with the view of the appellate authority that the buildings in question having been registered as factory buildings and having been used for repair of the buses, the buildings have to be treated as factory buildings. The said view of the Tribunal is sought to be challenged by the Revenue by seeking a reference to this court. However, on the findings rendered by the Tribunal in this case on both the issues, there is no justification for referring the two questions set out above. On the question as to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are used not only for parking the vehicles but also for carrying out minor repairs. Once it is found that the buildings are used for carrying out minor repairs to the vehicles, the buildings have to be taken as workshops or factories. Admittedly, in this case, the buildings have been registered as factories under the Factories Act. " Factory ", according to the Concise Oxford Dictionary, means " manufactory " as well as " workshop ". We are not in a position to agree with the learned counsel for the Revenue that merely because minor repairs alone are carried out in the buildings, they cannot be said to be factories or workshops. Even places where minor repairs to the vehicles are carried out could very well be called workshops. As a matter ..... X X X X Extracts X X X X X X X X Extracts X X X X
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