- (1.) THE assessee claimed Rs. 99,375 incurred on repairs of kucha roads. It was in respect of the construction of roads at the factory in Chainpura, Ghewaria Mines and Shiv Bhandar. According to the assessee, the roads were kucha and the expenditure had been incurred for facilitating the running of the motor vehicles for transportation of goods from the mines to the factory. THE expenditure was claimed to be of revenue nature.
(2.) THE Income-tax Officer took the view that the expenditure being substantial and the roads being of enduring nature, the expenditure was of a capital nature. In appeal, the Commissioner of Income-tax (Appeals) deleted the addition made by the Income-tax Officer. The Income-tax Appellate Tribunal took the same view as that of the Commissioner and, as such, it found that the money spent for the repairs of roads was not of enduring nature and was consequently revenue. Against the aforesaid judgment, the Commissioner of Income-tax moved an application under Section 256(1) of the Income-tax Act, 1961, referring the following question : "Whether, on the facts and in the circumstances of the case and in law, the Tribunal was justified in upholding the finding of the Commissioner of Income-tax (Appeals) that the expenditure of Rs. 99,375 incurred by the assessee on repairs of kucha roads was revenue in nature and, therefore, allowable expenditure ?" The Income-tax Appellate Tribunal held that the assessee was entitled to the expenditure of the aforesaid amount and finding no merit in the contention of the Department, rejected the application. The Department has now approached this court by means of the present application.
(3.) WE have heard learned counsel for the parties. The contention of the Department is that the expenditure incurred is not a revenue expenditure in terms of the provisions of Section 37 of the Income-tax Act. It has been laid down that whether a particular item of expenditure constitutes revenue or capital disbursement is to be determined on the facts of each case, because no one test or principle or criterion is paramount or conclusive or of universal application. ;