SABYASACHI MUKHARJI, J.

( 1 ) IN this reference under Section 256 (1) of the I. T. Act, 1961, we are faced with the familiar but not too easy question whether the particular expenditure should be allowed as a revenue expenditure or not. This reference arises out of the assessment far the assessment years 1964-65 to 1966-67 and the relevant accounting years were calendar years 1963 to 1965, respectively. The assessee is a company which carried on, at the relevant time, the business of execution of contracts. There was an agreement entered into between Hindustan Steel Limited, hereinafter called HSL and Dr. C. Otto and Co. , Gmbh (German company), the assessee-company, incidentally the name of which has been subseuently changed and we have, by an order passed today, altered that name, and hereinafter the said company is called the assessee-company. The contract was for (1) expansion of coke oven plant, and (2) construction of houses/bungalows including furniture, sanitary and electrical installations in Rourkela Township. It would be appropriate, in our opinion, to describe the heading of the contract which was as follows ; "contract for the Expansion of Coke Oven Plant at Rourkela,

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