J.L. Gupta, J. - (1.) In this appeal under Sec. 260A of the Income Tax Act, 1961, the Revenue maintains that the following substantial question of law arises for the consideration of this court : "Whether, on the facts and circumstances of the case, the Income Tax Appellate Tribunal was right in law in treating the expenses incurred on the purchase of rolls as a revenue expenditure particularly when such rolls have been termed as capital assets of the concern on which depreciation is allowable under the Income Tax Act itself at the prescribed rates -
(2.) We have heard Mr. R. P. Sawhney, learned counsel for the Revenue. He submits that the Tribunal has erred in treating the deduction claimed by the assessee as revenue expenditure.
(3.) The assessee is running a steel rolling mill. In para. 4 of the petition of appeal, it has been admitted that "in the absence of rolls, it is difficult to prepare the finished products in the case under reference." Yet the Revenue alleges that the rolls cannot be treated as an integral part of that machinery or plant.;