2015 (12) TMI 911

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..... g working capital availed from bank and by incurring he expenditure no capital asset has come into existence. Before us no material has been placed on record by the Revenue to controvert the findings of CIT (A) and ITAT treating the expenses as revenue. - Decided against revenue Expenses on account of repairs, renovation, building road, Labour charges and maintenance expenses - revenue or capit .....

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..... core machinery, replacement of parts was carried out by way of reconditioning and the expenditure involved was for such purpose. Assessing Officer without rejecting the contention of the assessee that the core machinery remained unchanged, disallowed the expenditure and treated as capital expenditure. Here also, the Tribunal observed that merely because the cost of repair was close to written down .....

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..... (ii) Whether in the facts and circumstances of the case, the learned ITAT has erred in law and on facts in confirming the order of CIT (A) deleting the disallowance of ₹ 15,04,328/- made by the Assessing Officer after treating the expenses on account of repairs, renovation, building road, Labour charges and maintenance expenses as capital expenditure? (iii) Whether in the facts and circ .....

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..... ile deleting the addition has noted that the expenses incurred towards pledge agreement with the bank was for borrowing working capital availed from bank and by incurring he expenditure no capital asset has come into existence. Before us no material has been placed on record by the Revenue to controvert the findings of CIT (A) and thus this ground of Revenue is dismissed . We are in broad agre .....

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..... ery, replacement of parts was carried out by way of reconditioning and the expenditure involved was for such purpose. Assessing Officer without rejecting the contention of the assessee that the core machinery remained unchanged, disallowed the expenditure and treated as capital expenditure. Here also, the Tribunal observed that merely because the cost of repair was close to written down value of t .....

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