TMI Blog2010 (2) TMI 140X X X X Extracts X X X X X X X X Extracts X X X X ..... ale consideration is paid and when the machinery purchased by him has been despatched by the vendor from USA, sale transaction is completed and as per the provisions of the Sale of Goods Act, title to the goods has been passed on to the assessee and he has become the owner of the second hand machineries purchased by him to use them as spare parts even though the goods have been reached Airport at Bangalore in the month of August, 2001 and it is to be noted that when actually goods were delivered to the assessee is not the criteria to consider the sale transaction. - second hand machinery purchased by the assessee ought to be considered as spare parts for the existing old machineries and allowed as revenue expenditure - when an assessee purc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in March, 2001, he purchased second hand machines in order to dismantle the same used spare parts of it for his old equipments. Actually second hand machineries purchased by him at USA in the month of Maren, 2001 arrived Bangalore Airport in August, 2001. The claim made by the assessee has been negatived by the Department on the ground that during the relevant assessment year old machineries purchased by the assessee had not reached Bangalore, therefore the said claim has to be disallowed and that if at all the assessee is entitled to his same can be considered for the next assessment year. Accordingly, order of assessment came to be completed. Being aggrieved by the order of assessment, assessee filed an appeal before the Commissioner of I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e only course open to the assessee was to purchase second hand machinery and use it as and when the equipments of the assessee worn out on account of its usual wear and tear. His submission is that the assessee being a cardiologist cannot be expected to send his equipment for repairs only these machineries are worn out. Considering the nature of his profession, machineries are required to be repaired forthwith and such repairs cannot be Hone immediately on account of non-availability of that spare parts in India. If the reasonings of the assessing officer is accepted, the assessee being a cardiologist would be unable to treat the patients immediately if his equipment installed in Bangalore and Mysore are worn out because of its usual wear a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assed on to the assessee since title to the goods is on to the assessee, the moment the goods are sold by the vendor of the assessee that too after complete payment of the entire sale consideration. He contends that this aspect of the matter has not been considered by the assessing officer so also by the Commissioner of Income-Tax (Appeals) and the tribunal therefore he requests to set aside of the orders and answer the questions of law in favour of the assessee. 6. Par contra, learned counsel for the revenue contends that the amount paid by the assessee to purchase second hand equipment at USA in the month of March,2001 cannot be considered as an expenditure incurred by the assessee towards the maintenance of the machinery. According to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... atients arrive and considering the nature of cardiac problems in India, no cardiologist say that the patient has to approach him only after the machinery is restored to its original position. When the spare parts are not available in India as a prudent doctor and wise man has rightly purchased second hand machineries in USA in anticipation that such machineries are required to be used as spare parts in order to serve the patients. Therefore, purchase of second hand machineries by the assessee by paying cash in USA has to be taker; as a transaction took place during the relevant assessment year and it cannot be considered as a transaction for the future assessment year. When the entire sale consideration is paid and when the machinery purcha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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