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2019 (1) TMI 599 - MADRAS HIGH COURTExpenditure relating to setting up of new unit at Sriperumbudur - nature of expenditure - revenue expenditure OR capital expenditure - Held that:- Tribunal rightly followed the judgment of this Court in the case of CIT Vs. Rane (Madras) Limited [2007 (6) TMI 25 - HIGH COURT, MADRAS] and CIT Vs. Sakthi Sugars Limited [2010 (8) TMI 456 - MADRAS HIGH COURT] in concluding that the expenditure incurred by the assessee has to be treated as a revenue expenditure. Unabsorbed depreciation for the previous years - Revenue contends before us that the eight years limitation in respect of carry forward of the depreciation had expired and therefore, the assessee was not permitted to carry forward - Held that:- This issue relating to unabsorbed depreciation has to be reconsidered by the Tribunal after due opportunity to the Revenue and the assessee to enable them to place all the decisions on this point. Accordingly, the finding rendered by the Tribunal with regard to carry forward of the unabsorbed depreciation relating to the assessment year 1997-98 is set aside and the matters are remanded to the Tribunal for a fresh decision on merits and in accordance with law. Disallowance under Section 14A - Held that:- The disallowance under Section 14A has been a point of dispute in several cases. Therefore, we opine that the Tribunal shall reconsider the said issue factually taking note of the precedents relied upon by both the Revenue as well as the assessee and take a reasoned decision so that they could be applied in future cases as well. Considering the above, we are of the view that substantial question raised by the Revenue i.e. the issue pertaining to disallowance under Section 14A of the Act for all the assessment years requires to be redone.
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