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JUDGMENT N. Kumar, J. - In all these eight appeals the assessee is the same and the following substantial questions of law arise for, consideration in these appeals: "1. Whether the Tribunal was correct in directing the Assessing Officer to verify the payment of TDS in subsequent years and allow the expenditure in the year of payment as per Section 40 (a)(i) of the Act when the proviso was introduced w.e.f 01.04.2004 when the challans produced was for assessment years 2003-04, 2004-05 & 2005-06? 2. Whether the Tribunal was correct in holding the machinery installed in the premises of the contractors M/s. Nicholas Piramal for the purpose of manufacturing of goods for the assessee can be said to be used for the purpose of the business of the assessee and depreciation should be allowed to the assessee? 3. Whether the Tribunal was correct in holding that M/s. Nicholas Piramal, the contractor entrusted with the work of manufacturing medicines by the assessee, the payments made for quality control tests was allowable deduction even when no TDS was made and the same was disallowable u/s.40(a)(i) of the Act? 4. Whether the Tribunal was correct in remitting the matter to the Assessing Officer to verify the oral statement of the assessee that there are certain. documents to establish the liability of the assessee to reimburse the expenditure to M/s. Nicholas Piramal towards quality control tests?" 2. Reg. substantial question No. 1: The contention of the revenue is, Section 40(a)(i) was substituted by Finance Act, 2004, which came into effect from 01.04.2005. Therefore, the said provision has no application for the assessment years prior to 01.04.2005 and therefore he submits, the impugned orders passed granting the benefit in terms of the substituted provision is erroneous and requires to be interfered with. In order to appreciate this contention, it is necessary to have a look at the earlier provision and the subsequent provision and then find out what is the difference and what is exactly the intention of the legislature in enacting the substituted provision. Sec.40(a)(i) prior to 1/4/2005 reads as under, which in fact was brought on the statute book by Finance…

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