SABYASACHI MUKHARJI, J.

( 1 ) THE assessee is a company carrying on the business of tea-growing. The assessment year is 1964-65, for which the relevant accounting year is the calendar year 1963. The Income-tax Officer found under the head " repairs account " an expenditure of Rs. 26,643. The said expenditure included the cost of fencing to the tune of Rs. 19,748. He, however, found that in the immediately preceding assessment year the assessee had claimed an expenditure in respect of fencing to the tune of Rs. 4,630. After looking into the details of the expenditure, the Income-tax Officer was of the view that new fencing lines were fixed with new pillars, and, therefore, a major portion of the expenditure was capital expenditure. He, therefore, disallowed on estimate a sum of Rs. 12,000. There was an appeal before the Appellate Assistant Commissioner. It was urged before the Appellate Assistant Commissioner that no new fencing were put up during the year under consideration and that the expenditure pertained to the repairs of fencing which had to be done after a couple of years and, therefore, the Income-tax Officer was not justified in treating the sum of Rs. 12,000 as capital e

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