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2012 (11) TMI 1092 - AT - Income TaxReassessment u/s 147 - Expenditure incurred on replacement of machinery - revenue expenditure or capital expenditure - Held that - The concept of block of assets has been brought in by the Parliament from the assessment year 1988-89, whether the mill is an integrated whole or not, whether the replacement of machines resulted in increased capacity or not, will have no bearing and when any item belonging to the block is removed, its value is reduced and if any new item comes in its place, its value is added to the block. - To be treated as capital expenditure - decided in favor of revenue. Levy of interest u/s 234B and/or 220(2) - The case of the assessee is that the Assessing Officer has levied interest u/s 220(2) without considering the circular dated 3-4-1982 - Held that:- in the assessment order itself at page No.10 the Assessing Officer has charged the interest under section 234B - As per the decision of the Hon'ble Supreme Court in the case of CIT v. Anujm M.H. Ghaswala And Others [2001 (10) TMI 4 - SUPREME Court], charging of interest under section 234B of the Act is mandatory. - Decided against the assessee.
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