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2021 (7) TMI 801 - AT - Income TaxNature of expenditure - new dyes expenditure claims - The dies are made as per project wise or the product wise and keeps changing for the other project - AO treated the impugned expenditure as a capital item eligible for depreciation than revenue expenditure as per assessee’s stand adopted throughout - HELD THAT:- No merit in Revenue’s preceding arguments. This is firstly for the reason that the above stated depreciation schedule only talks about the specified items than all kinds of dyes involving metal items. We make it clear that the assessee’s dyes in issue are not made out either of rubber or plastic material. We thus adopt stricter constructions going by hon’ble apex court’s recent landmark judgement in CIT vs Dilip Kumar and Co [2018 (7) TMI 1826 - SUPREME COURT] to decline Revenue’s former argument and hold that assessees’ dyes are not covered under the foregoing items in the depreciation schedule. Coupled with this, it has come on record that hon’ble Madras high court’s decision in M/s TVS Motors Ltd. [2014 (2) TMI 522 - MADRAS HIGH COURT]has already held; after considering all relevant case laws, that such dyes come under revenue head of expenditure than capital only. We therefore see no reason to interfere with the CIT(A)’s findings having correctly appreciated relevant facts / law. - Decided against revenue.
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