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2022 (9) TMI 290 - AT - Income TaxNature of expenditure - replacement of spare parts - revenue expenditure or capital expenditure - HELD THAT:- This issue is considered in the case of Super Spinning Mills Ltd.[2013 (9) TMI 88 - MADRAS HIGH COURT] and considered the replacement of machinery as revenue in nature by holding that the basic test is to find out whether expenditure is incurred to preserve and maintain already existing asset and said expenditure must not be incurred to bring any new asset into existence to obtain a new advantage. The expenditure is to be treated as revenue in nature. In the present case before us also the fact is that the assessee has replaced the spare parts which are regular repairs and maintenance because it is a routine replacement of spare parts. Even the Revenue has not administered how the replacement will bring enduring benefit to the assessee. As in the case of Prabhu Spinning Mills[2013 (8) TMI 1165 - ITAT CHENNAI] and in the case of Super Spinning Mills Ltd. [2013 (9) TMI 88 - MADRAS HIGH COURT] we allow the claim of assessee and reverse the orders of lower authorities. Appeal of assessee allowed.
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