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2020 (1) TMI 507 - HC - Income TaxNature of expenditure - current repairs - cost of replacement of machineries like Motor Rollers, Spindles, Gears etc. in the Textile Mill of the Assessee - revenue expenses or capital expenses - HELD THAT:- The total replacement cost of three machineries in question purchased by the Assessee came to be allowed by the Tribunal as 'repairs maintenance expenditure' or 'revenue expenditure'. The said findings of the learned Tribunal are clearly contrary to the decision of the Hon'ble Supreme Court Sarangpur Cotton Mfg. Co. Ltd. [2017 (4) TMI 301 - SUPREME COURT] and therefore, the view of the Tribunal cannot be sustained and the replacement of the machineries as a whole by the Assessee cannot be held to be current repairs or allowable revenue expenditure. Therefore, respectfully following the binding precedent of the Hon'ble Supreme Court in the case of Commissioner of Income Tax, Gujarat V. Sarangpur Cotton Mfg. Co. Ltd. [2017 (4) TMI 301 - SUPREME COURT] the present Appeals filed by the Revenue deserves to be allowed and the substantial question of law framed is answered in favour of the Revenue and against the Assessee
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