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2002 (11) TMI 46 - KERALA HIGH COURTSugar factory - The question involved in this case is as to whether the expenditure incurred by the assessee in the matter of replacement of a manually operated crane by an electrically operated crane, is a capital expenditure or not. - The Assessing Officer took the view that the expenditure is capital in nature. According to him, the assessee had introduced a new independent self-contained machinery. - we are of the view that this question must be considered by the assessing Authority for the said purpose. We accordingly set aside the orders of the assessing authority, the first appellate authority and the Tribunal on this point and direct the assessing authority to consider this question in the light of the principles laid down by this court in the assessee's case mentioned supra and in the light of the observations contained herein. It is open to the assessing authority to arrange for an inspection of the sugar factory of the assessee with notice to the assessee for the purpose of ascertaining the correct factual situation and a decision will be taken by the assessing authority as directed above thereafter.
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