judgment

KAPADIA, J. —

1.Aggrieved by the common judgment dated 29.4.2005 passed by the High Court of Judicature at Madras in Tax Case (Appeal) Nos. 53/2004 etc., the Department has come to this Court by way of a batch of civil appeals. For the sake of convenience, we have set out hereinbelow the facts in the lead case of M/s Saravana Spinning Mills Pvt. Ltd. (Civil Appeal Nos. 7604-7605/2005).

2.In this group of civil appeals we are required to decide the extent and scope of Section 31(i) of the Income Tax Act, 1961 as it stood during the accounting years ending 31.3.1993 and 31.3.1994.

3.For this purpose, we quote hereinbelow Section 31, as it stood during the relevant period:

“31.Repairs and insurance of machinery, plant and furniture.- In respect of repairs and insurance of machinery, plant or furniture used for the purposes of the business or profession, the following deductions shall be allowed-

(i)the amount paid on account of current repairs thereto;

(ii)the amount of any premium paid in respect of insurance against risk of damage or destruction thereof.”

4.The facts in Civil Appeal Nos. 7604-7605/2005 are as follows :

M/s Sarvana Spinning Mills Pvt. Ltd. (the assessee) is a textil