TMI Blog2009 (12) TMI 967X X X X Extracts X X X X X X X X Extracts X X X X ..... against the order of the Income Tax Appellate Tribunal, Madras 'A' Bench, dated 28.1.2004 passed in I.T.A.No.16/Mds/1997 in respect of the assessment year 1993-94 by formulating the following substantial questions of law: (1). Whether in the facts and circumstances of the case, the Tribunal was right in allowing a deduction of the amounts spent on new machinery as revenue expenditure ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ect of replacement expenditure of autoconer etc. The assessing officer has found that the claim of the assessee that it had sold the old machinery and brought a new one was found to be false. Assessing Officer held that the purchase of new machinery cannot be treated as a revenue expenditure. Since the assessee had two mills, the assessing officer recomputed the deduction under Section 80I for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d is with respect to replacement and the same is revenue expenditure. The Tribunal also upheld the decision of the CIT(A) with respect to the computation of the deduction under Section 80I. Aggrieved by the order of the Income-tax Appellate Tribunal, the present appeal is filed by the revenue. 3. It is submitted by the learned counsel on either side that the first three questions of law are cov ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... OF INCOME-TAX VS. RAMARAJU SURGICAL COTTON MILLS reported in (2007) 294 ITR 328 and COMMISSIONER OF INCOME-TAX VS. SARAVANA SPINNING MILLS PRIVATE LIMITED reported in (2007) 293 ITR 201. 4. In the light of the order passed by the Supreme Court in the above said decision, in respect of the three questions of law, the order of the Tribunal is set aside and the matter is remitted back to the Comm ..... X X X X Extracts X X X X X X X X Extracts X X X X
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