P.D. Dinakaran, J.

The Revenue has preferred the above tax case appeal against the order of the Income-tax Appellate Tribunal dated 22. 2003 in ITA No.1088 & 3589/Mds/1990 for the assessment years 1986-87 and 1987-88 raising the following substantial questions of law for consideration:

1. Whether in the facts and circumstances of the case, the Tribunal was right in holding that depreciation should be allowed on stand by spare parts even though they were not taken for use during the year?

2. Whether in the facts and circumstances of the case, the Tribunal was right in holding that the expenses related to obtaining fixed deposits from the public is a revenue expenditure liable for deduction?

2. The facts, in brief, are as under:

2. 1. The assessment years with which we are concerned are 1986-87 and 1987-88. The assessee filed its returns, inter alia, claiming depreciation on standby items such as, spare parts in respect of critical parts of plant and machinery for both the assessment years. In so far as the assessment year 1987-88 is concerned, the assessee claimed deduction of expenses relating to the issue of fixed deposits as revenue expenditure. The assessing office