Home Case Index All Cases Income Tax Income Tax + SC Income Tax - 2017 (4) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (4) TMI 301 - SC - Income TaxEntitlement to deduction on account of revenue expenditure incurred on machineries replaced - Held that:- Each items for which deduction under the head “current repairs” was sought is a machine by itself and therefore deduction under Section 31(i) cannot be allowed. As in the case of Sarvana Spinning Mills (P) Ltd. [2007 (8) TMI 16 - SUPREME COURT OF INDIA] held that if the current repairs relate to independent machines itself instead of repair of a part of that machine, deduction cannot be granted under Section 31(i) of the Income Tax Act, 1961. Also in a textile mill there are several departments/divisions. In each department/division 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. Respondent is not entitled for any deduction under the head “current repairs” as claimed and allowed by the two authorities. - Decided against assessee
|