Law:

Section:

Income-tax Act (XI of 1922), S. 10(2)(xv)-Business expendi ture-Sugar factory-Expenses incurred in paying taxes under District Boards Act-Contribution to school on account of charity-Repairs -Amount spent to replace part of machinery sold-"Repair", "Renewal", "Replacement"-Appellate Tribunal-Discretion to entertain new ground based on question of fact-Interference.   The assessee was a limited company which was running a sugar factory within the area falling in the jurisdiction of the District Board of Meerut during the previous year relating to the assessment year 1950-51. The company earned profits and during the previous year in question had to pay an amount of Rs. 2,000 as District Board tax. The assessee claimed that this amount of Rs. 2,000 should be deducted as an expenditure under sec tion 10(2)(xv) of the Income-tax Act, 1922 but this claim was rejected by the Income-tax Officer, the Appellate Assistant Commissioner as well as the Income-tax Appellate Tribunal.   During the same previous year, the assessee contributed a sum of Rs. 800 to a school where the children of the assessee company's workers used to read and consequently the assessee claimed that this sum was also a deductible expenditure under section 10(2)(xv) of the Income-tax Act. The Income-tax Appellate Tribunal held that the school was not maintained by the assessee company and the contribution was purely in the nature of charity and consequently rejected the claim of the assessee in respect of this deduction.   The assessee during the previous year in question had sold a quadruple for a sum of Rs. 46,257. This amount was treated as income under section 10(2)(vii) of the Income-tax Act by the Income-tax authorities as well as by the Income-tax Appellate Tribunal on the ground that the depreciated value of this part of the machinery was zero inasmuch as 100 per cent. depreciation had already been allowed in respect of it in the past. In the appeal before the Income-tax Appellate Tribunal, the assessee raised one more additional point in respect of the addition of the sum of Rs. 46,254, namely, that the assessee had spent a sum of Rs.…