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2016 (9) TMI 1655 - HC - Income TaxNature of expenses - expenses incurred for replacement of membrane cells - revenue or capital expenditure - Principle of consistency - whether membrances were integral part of plant without which the plant cannot function effectively and that, it has enduring benefit for at least 2 or 3 years? - Tribunal deleting the addition treating the same as capital expenditure - HELD THAT:- As identical issue came up for consideration before this Court in case of this very assessee for earlier year [2016 (8) TMI 1462 - GUJARAT HIGH COURT ] attempt to contend that life of membrane would be spread over from 3 to 5 years or that the amount involved for replacement of membrane is huge and, therefore, the departure on the part of the Revenue could be said as justified, in our view, cannot be countenance for two reasons. One is that the amount involved would not make difference for chargability of the tax but the nature of expenditure would be relevant for the chargability of tax. It hardly matters whether the amount is more or less. Further, on the aspect of life of the membrane, nothing is referred to by the A.O. nor by C.I.T. (A) that earlier, such aspect, namely, life of the membrane spread over from 3 to 5 years was not considered or it had missed or otherwise. See Gujarat Alkalies and Cheimcals Ltd [2015 (2) TMI 118 - GUJARAT HIGH COURT] - Decided against revenue.
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