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2018 (12) TMI 1270 - MADRAS HIGH COURTAllowable revenue expenditure - claim of modernization/expenditure incurred - whether the expenditure incurred by the assessee on replacement of old machinery by purchase and installation of new machinery, replacement of spares of textile machinery be allowable as a Revenue expenditure? - Held that:- A Division Bench of this Court in the case of Super Spinning Mills Ltd. Vs. ACIT [2013 (9) TMI 88 - MADRAS HIGH COURT] considered an identical substantial question of law as framed in this appeal and after taking note of the decisions of Saravana Spinning Mills Pvt. Ltd. [2007 (8) TMI 16 - SUPREME COURT OF INDIA] and Mangayarkarasi Mills (P) Ltd [2009 (7) TMI 17 - SUPREME COURT] remanded the matter to the Commissioner of Income Tax (Appeals) [for short, the CIT (A)] to decide the issue as to whether the expenditure, in effect, could be treated as revenue expenditure. In the light of the legal position as enunciated above we are of the considered view that the matter has to be remanded for fresh consideration.
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