Law:

Section:

Section 32, read with section 256 of the Income-tax Act, 1961 - Depreciation - Allowance/rate of - Whether where machinery came into contact with corresive material, no question of law arose in allowing depreciation at rate of 15 per cent - Held, yes Section 37(1) read with section 256 of the Income-tax Act, 1961 - Business expenditure - Allowability of - Whether expenditure incurred on repairs of temple and commerce school run by assessee was admissible or not, was a referable question of law - Held, yes CASE REVIEW CIT v. Bharat Commerce & Industries Ltd. (No. 1)[1990] 184 ITR 90 (Delhi)followed and relied upon. CASES REFERRED TO CIT v. Bharat Commerce & Industries Ltd. (No. 1) [1990] 184 ITR 90 (Delhi). D.K. Jain and D.N. Malhotra for the Applicant. M.S. Syali for the Respondent. JUDGMENT The petitioner is seeking reference of the following four questions : "(1)Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is correct in law in holding that contribution of Rs. 1,16,950 to Bharat Commerce Vidyalaya was expenditure laid out wholly and exclusively for the purposes of the assessee's business ? (2) Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was correct in law in deleting the disallowance of expenditure of Rs. 1,72,216 on gifts and presents ? (3)Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal is right in law in directing that depreciation be allowed at 15% because the manufacturing of synthetic yarn involves machinery coming into contact with corrosive material when this point did not arise out of the order of the Commissioner of…

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