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2015 (8) TMI 1092 - AT - Income TaxReplacement of carding & roving machines and ring frames expenditure - revenue expenditure deductible under section 37 or Current repairs deductible under section 31 - Held that:- Following the decision of the Hon’ble Supreme Court in the case of CIT v. Srif Mangayarkarasi Spinning Mills (P) Ltd. (2009 (7) TMI 17 - SUPREME COURT) were in held that though accounting practices may not be the best guide in determining the nature of expenditure, in this case they are indicative of what the assessee itself thought of the expenditure it made on replacement of machinery and that the claim for deduction under the Act was made merely to diminish the tax burden, and not under the belief that it was actually revenue expenditure – Order of AO restored by holding that the expenditure is capital in nature. We hold that replacement of machinery in textile mills is capital expenditure and not allowable as deduction under section 37 of the I. T. Act. Also see M/s.Rajnarayan Textiles Ltd. Vs. ACIT [2015 (8) TMI 1064 - ITAT CHENNAI] - Decided against assessee.
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