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2013 (1) TMI 653 - PUNJAB AND HARYANA HIGH COURTRepair & maintenance expenses - Current Repairs - capital v/s revenue - Held that:- Repair and maintenance is in fact necessary not only for achieving the optimum utilization of machinery but also if possible to extend its economic life. Therefore, the fact that such installation has increased life beyond their original economic life cannot be a ground to conclude that the expenses incurred were not for repair and maintenance. Similarly, the ground of increase in the profitability of concern is again a totally alien to determine the nature of the repair and maintenance. Increase in profit would lead to increase in income, which would be separately taxable but could not be a ground for declining the expenses incurred by the assessee for repair and maintenance. Though the findings returned is that new identifiable assets have been created but the Tribunal has returned a finding that though each of the item is useable independently but that such items have been used for repair and maintenance. With such finding, the expenditure was allowed. The findings recorded by the Tribunal are the findings of fact - no substantial question of law arises for consideration.
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