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2017 (4) TMI 1290 - AT - Income TaxConsumption of machinery spares - revenue or capital expenditure - Held that:- As gone through the details pertaining to the specific nature of machine parts as per available on record. We could not find any concrete specification indicating that all these parts/spares are not a capital items. We find that the ld. CIT(A) has provided complete analysis of functioning of these items and he has restricted the addition after treating the expenditure towards small items, spare/repair as revenue expenditure, therefore, we disinclined to interfere in the findings of the ld. CIT(A). Disallowing deduction u/s. 80IB(4) - Held that:- This issue in question was covered in favour of the assessee by the decision in the case of Alembic Ltd [2016 (7) TMI 1239 - GUJARAT HIGH COURT] wherein the issue in question that the assessee is eligible for computation of deduction u/s 80IA(4) on the rates charged by it at selling price is no more res integra. - Decided in favour of assessee Expenditure on dies and tools - revenue or capital - Held that:- We noticed that in the business of manufacturing aluminum there is a requirement of using dies of different sizes. We further noticed that the similar issue was raised in the Department proceedings u/s. 263 for assessment year 1996-97 which was dropped and for the assessment year 1997-98 the ld. CIT(A) had deleted the similar addition . After considering above mentioned facts and findings we find that it has been established that dies tools were of consumable nature having short span of life. We have also considered that in earlier years these facts were accepted by the Revenue, therefore, we dismiss the appeal of the revenue
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