Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2011 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (12) TMI 293 - HC - Income TaxRevenue or capital expenditure - Deduction of the amounts spent on replacement of machinery as revenue expenditure - replacement of independent complete machinery - Block of asset - expenditure incurred on repairs of the rented building - Held that :- the substantial questions of law as covered as per the judgment of this Court, dated 25.04.2011 in Tax Case (Appeal) Nos.71 and 72 of 2008 - once the concept of block of assets has been brought in by the Parliament from the assessment year 1988-89, whether the mill is an integrated whole or not, whether the replacement of machines resulted in increased capacity or not, will have no bearing and when any item belonging to the block is removed, its value is reduced and if any new item comes in its place, its value is added to the block - tax case appeal are answered against the assessee and in favour of the revenue. Section 37(1) of the Income Tax Act permits deduction of only such expenses not being capital expenditure of the nature prescribed under Sections 30 to 36 - when the major repairs in the nature of capital expenditure is carried out, it cannot be treated as deductible under Section 37(1) of the Income Tax Act, merely because the premises is rented - tax case appeal decided against the assessee and in favour of the revenue.
|