TMI Blog2013 (12) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... ts merely in facilitating the assessee's trading operations or enabling the management and conduct of the assessee's business to be carried on more effectively or more profitably while leaving the fixed capital untouched, the expenditure would be on revenue account, even though the advantage may endure for an indefinite future" – Decided against Revenue. - I.T.A. No.7653/Mum/2010 - - - Dated:- 20-11-2013 - Shri B. R. Mittal,(JM) And Rajendra (AM),JJ. For the Appellant : Shri Surendra Kumar For the Respondent : Shri Nitesh Joshi ORDER Per B. R. Mittal, JM: The department has filed this appeal for assessment year 2006-07 against order of ld. CIT(A) dated 30.8.2010 on the ground that the ld. CIT(A) has erred in directing A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the said expenditure as capital and after allowing depreciation at the rate of 10% thereof, made addition of Rs. 19,56,824/- to the total income of the assessee. Being aggrieved, assessee filed appeal before he First Appellate Authority. 3. On behalf of the assessee, it was contended that the assessee undertook repairs and alterations to its existing manufacturing facilities. The said expenditure of Rs.21,74,249/- has not resulted in creation of any new asset of enduring nature and as such the entire expenditure incurred, is revenue in nature. Ld.CIT(A) after considering the submissions of the assessee vide para 8 of the impugned order held that the said expenditure is revenue in nature and directed the AO to allow the same and withdraw ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... into existence. The Hon'ble Apex Court has also held in the case of CIT V/s Associated Cement Companies Ltd. 172 ITR 257(SC) that "what is material to consider is the nature of the advantage in a commercial sense and it is only where the advantage is in the capital field that the expenditure would be disallowable on an application of enduring benefit. If the advantage consists merely in facilitating the assessee's trading operations or enabling the management and conduct of the assessee's business to be carried on more effectively or more profitably while leaving the fixed capital untouched, the expenditure would be on revenue account, even though the advantage may endure for an indefinite future". However, the Hon'ble Apex Court also held ..... X X X X Extracts X X X X X X X X Extracts X X X X
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