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2006 (1) TMI 82 - MADRAS HIGH COURTRevenue or capital expenditure - "1. Whether, Tribunal was right in allowing a deduction of the amounts spent on replacement of machinery as revenue expenditure? 2. Whether replacement of independent complete machinery can be treated as revenue expenditure? 3. Whether, Tribunal was right in deciding the issue without going into the concept of block of assets?" - assessee had only replaced the simplex machine and doubling frame, blow room and ring frame without discontinuing their production activities and we have already held that there was no acquisition of any new asset, much less capital of any enduring advantage. A perusal of the orders of the authorities below shows that no claim for depreciation was ever made before any authorities by the assessee, nor the Revenue raised the question of block of assets. – revenue appeal dismissed
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