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1. At the Instance of the Commissioner of Income-tax and Excess Profits Tax, Madras, the Appellate Tribunal referred', to us the following question for our decision. "Whether, on the facts and in the circumstances of the case the expenditure of Rs. 86, 496 incurred in the purchase, erection and fitting of the-new boiler for replacing the old one was capital expenditure within the meaning of Section 10(2) (xv) of the Indian Income-tax Act, 1922". The assessee is Sri Rama Sugar Mills Ltd., Bobbili. The company manufactures sugar at two factories owned by it, one at Bobbili and another at Sithanagaram. The machinery for manufacturing sugar included among other things, boilers. The factory at Bobbili owned three boilers which? were used for the manufacture of sugar. During the crushing season which extends nearly for six; months in the year, the factory undoubtedly has to work for 24 hours and during such period two boilers have to be constantly in use. The third boiler is necessary and has to be used when anyone of the other boilers have to be cleaned up at intervals and have to be given rest. One of these three boilers deteriorated in its efficiency during the relevant accounting period and the assessee was obliged to purchase another boiler at a cost of Rs. 86,496 and the old boiler was sold for a sum of about Rs. 15000.