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TMI Blog1980 (9) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... for its opinion at the instance of the revenue: " (1) Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in allowing depreciation at the rate of 15% on the ice plant machinery valuing Rs. 3,84,132 during the assessment year 1970-71 ? 2. Whether, on the facts and in the circumstances of the case, the expenditure of Rs. 24,532 for the assessment year 1970-7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessment year 1970-71, the assessee claimed a deduction of Rs. 38,218 on account of the said interest. The ITO disallowed the claim to the extent of Rs. 24,538 on the ground that the entire loan on which interest was claimed was not for the purposes of the assessee's business. The ITO calculated interest on a sum of Rs. 76,000 at the rate of 18%, as, according to him, only this much loan related ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red by the term " refrigeration plants " and thus this entry is not relevant for that purpose. This view was taken by the AAC and the Appellate Tribunal rightly reversed this view. We find that the Tribunal has elaborately discussed the connotation of the word " refrigeration " Reference has also been made to Webster's Dictionary, Oxford Dictionary and Encyclopaedia Britannica, Vol. 19, p. 70. We ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the assessee, but at a lower figure of the amount, as according to the ITO only that much capital was invested in the business of the assessee. The revenue did not challenge this finding of the ITO. The contention of Mr. Awasthy, learned counsel for the revenue, that in cases where the machinery has been purchased on hire purchase basis interest was not allowable, is without any merit. The lea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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