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2019 (6) TMI 1299 - HC - Income TaxExpenditure on replacement of old machinery by purchase and installation of new machinery - revenue expenditure as current repairs or capital expenditure - HELD THAT:- As decided in SARAVANA SPINNING MILLS P. LTD. [2007 (8) TMI 16 - SUPREME COURT] there are several machines and perform different functions. Therefore, when each of the department/division perform different functions, repair/ substitution of an old machine will not come within the definition of the word “current repairs” and deduction cannot be claimed thereunder. In this view of the matter, we are of the considered opinion that the impugned judgement and order passed by the Gujarat High Court as also the orders passed by the Income Tax Appellate Tribunal and the Commissioner of Income Tax Appeals on this issue cannot be sustained and are thereby set aside. It is held that the respondent is not entitled for any deduction under the head “current repairs” as claimed and allowed by the two authorities. - Decided in favour of revenue
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