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2014 (11) TMI 1217 - HC - Income TaxDeductible revenue expenditure u/s 37(i) - repairing of the furnace - HELD THAT:- Expenses in question incurred by the assessee on dismantling the old furnace and construction of a new furnace are clearly capital in nature, which is not supported by the factual matrix. The Apex Court in "CIT VS. SARAVANA SPINNING MILLS P. LTD. [2007 (8) TMI 16 - SUPREME COURT] wherein, the Apex Court held that to decide the applicability of section 31(i) the test is not whether the expenditure is revenue or capital in nature, which test has been wrongly applied by the High Court, but whether, the expenditure is "current repairs". The Apex Court, further, held that the basic test to find out as to what would constitute current repairs is that the expenditure must have been incurred to "reserve and maintain" an already existing asset and the object of the expenditure must not be to bring a new asset into existence or to obtain a new advantage. We are, hence, of the opinion that the present appeal deserves to be allowed. In view of the above discussion, the decision relied on by Mrs. Bhatt in "BRITANNIA INDUSTRIES LTD. VS. CIT & ANR." [2005 (10) TMI 30 - SUPREME COURT] shall not apply to the facts of the case on hand. Present appeal is allowed.
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