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2015 (10) TMI 1447 - AT - Income TaxExpenditure under the head "repairs and maintenance" for replacing old windmill with the new one - revenue v/s capital expenditure - Held that:- It is not clear from the records before us whether the assessee has replaced only damaged parts of the existing windmill or has replaced entire old windmill with the new one. These facts have to be ascertained from books, purchase order, job sheet, etc. In case, the assessee has replaced only damaged parts of the windmill, without there being substantial change in original performance and generation capacity of windmill the expenditure is allowable as claimed by the assessee. We find that the judgment of the hon'ble Allahabad High Court in the case of CIT v. Renu Sagar Power Co. Ltd. [2007 (9) TMI 183 - ALLAHABAD HIGH COURT] also supports the contentions of the learned authorised representative. Needless to say that if it is case of replacing a new windmill in the place of old windmill, the expenditure would certainly be capital in nature. The file is remitted back to the Assessing Officer with a direction to decide the issue afresh after verifying the factual aspect. The Assessing Officer while deciding the issue de novo shall grant an opportunity of hearing to the assessee, in accordance with law.- Decided in favour of assessee for statistical purposes.
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