9911796707
TMI Blog1986 (1) TMI 143X X X X Extracts X X X X X X X X Extracts X X X X ..... considering the rival submissions, we dispose of the appeal as under: On ownership basis, the assessee acquired two floors in a ten storeyed building called Dugal House. The respective owners of the various floors of this building had formed a Society called Venkatesh Premises Co-operative Society Ltd. w.e.f. 1st July, 1979. By the side of the Dugal House, there had stood a High Voltage Electrical Installation. The owner of the High Voltage Electrical Installation made an offer to sell the installation to the Society for a sum of Rs. 6.75 lakhs. This offer was accepted by the Society, as the electrical installation would have helped the Society in the proper maintenance of the property. In order to purchase the electrical installation, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st in this asset, viz. High Voltage Electrical Installation. It is pointed out by the authorised representative that the assessee being a member of the Society came to acquire an interest in the asset, which became the property of the Society. It is thus argued by the departmental representative that, since the expenditure had been incurred on the purchase of a capital asset, the expenditure was of capital nature. 3. We are of the view that the expenditure incurred by the assessee by way of contribution of Rs. 75,000 to the Society for the purchase of the electrical installation by the Society, cannot be regarded as capital expenditure. Attention is drawn to the decision of the Bombay High Court in the case of CIT vs. Excel Industries Lt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee had made a contribution to the State of U.P. towards meeting the cost of construction of roads in the area around its factory under a Sugarcane Development Scheme. The question was whether the amount was deductible in computing the assessee's profits. The Supreme Court held as under: "It was true that the advantage secured for the business of the assessee was of long duration inasmuch as it would last so long as the roads continued to be in motorable condition, but it was not an advantage in the capital field, because no tangible or intangible asset was acquired by the assessee nor was there any addition to or expansion of the profit making apparatus of the assessee. The amount of Rs. 50,000 was contributed by the assessee fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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