1982 (6) TMI 83

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..... tribution of electricity but they were only devices just to measure the consumption of power. The CIT(A) was of the view that any machinery or plant installed for the purpose of business of generation or distribution of electricity was entitled to initial depreciation and the meters were certainly for the purpose of such business and, therefore, he directed the ITO to allow initial depreciation. 3. At the time of hearing, we have heard both the parties. The ld. Counsel for the assessee fairly conceded that the assessee-company having obtained deduction under the proviso to s. 32(1)(ii) of the IT Act, 1961 in respect of the cost of such meters installed in the previous year relevant for the asst. yr. 1976-77, direction of the CIT(A) for g .....

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..... dsell Co. (P) Ltd. (1981) 130 ITR 159 (Mad), in which the legal expenses incurred for obtaining approval of scheme of amalgamation was held to be a revenue expenditure. The ld. Deptl. Rep. Supported the order of the ITO. 6. After due consideration, we hold that the tests ladi down by their Lordships of the Supreme Court in the case of CIT, Kerala vs. Malayalam Plantations Ltd. (1964) 53 ITR 140 ((SC)), viz, the expenditure should have been incurred for carrying on the business and it was incurred in the capacity of person carrying on such business were duly satisfied in this case. It cannot be said that the expenditure has been incurred for acquiring any capital asset of enduring nature. On the other hand, the expenditure has been incu .....

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..... , the assessee filed a revised estimate on 11th Dec., 1975 showing the total income of Rs. 211 lakhs on which tax payable was shown at Rs. 121.74 lakhs. The ITO's case was that the assessee had filed an under-estimate of advance tax payable on 12th Sept., 1975 and consequently paid less amount of advance tax knowing it to be untrue. The case of the assessee was that it had no knowledge of the upward revision of rates of low and medium voltage consumers when the estimate was filed on 12th Sept., 1975 and the West Bengal Govt. had permitted such revision only from 1st Dec., 1975. Therefore, it was pleaded that the estimate was not untrue. The contention was accepted by the CIT(A) who observed that the levy of interest under s. 216 was not to .....

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