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2014 (1) TMI 589 - AT - Income TaxNature of Expenses Revenue OR Capital Expenditure Replacement of Machinery Held that:- Machinery has been replaced by the assessee to bring latest technology and for improving the efficiency of the plant and machinery - The replacement of machinery has resulted in increase in productivity as well as profits - Following CIT Vs. M/s. Mangayarkarasi Mills P.Ltd. [2009 (7) TMI 17 - SUPREME COURT] - expenditure incurred on replacement of machinery as capital expenditure - such expenditure is not allowable as revenue expenditure under the provisions of Sec.37 of the Act Decided against Assessee. Levy of Interest u/s 220(2) of the Act Held that:- Following M/s PRECOT MERIDIAN LTD [2014 (1) TMI 104 - ITAT CHENNAI] - The period specified under section 220(1) has to be taken into consideration from the date of passing of the fresh assessment order and not the earlier assessment order, which has been set aside decided in favour of Assessee. Interest u/s 234B and 234C of the Act Held that:- The interest u/s 234B and 234C is mandatory in nature - The interest is charged for contravening the provisions of the Act i.e. non-payment of advance tax within the stipulated time there was no infirmity in the order of CIT(A) Decided against Assessee.
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