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TMI Blog2012 (11) TMI 1148X X X X Extracts X X X X X X X X Extracts X X X X ..... Rai, CIT-DR ORDER PER ABRAHAM P. GEORGE, ACCOUNTANT MEMBER : In this appeal filed by the assessee, its grievance is that its claim for expenditure incurred towards replacement of machinery was not allowed by the Assessing Officer and this was confirmed by the CIT(Appeals). As per the assessee, the lower authorities failed to appreciate that each machine which was replaced only helped to mai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Section 31(i) of the Act treating the replacement as repair and in the alternative as business expenditure allowable under Section 37 of the Act. Insofar as the claim of the assessees under Section 31(i) is concerned, their claim stands rejected in view of the aforementioned judgment of this Court in the case of Saravana Spinning Mills (P) Ltd. (supra). However, insofar as the claim of the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e considered as revenue outgo, the CIT(Appeals) held that in view of the decision of Hon'ble Apex Court in the case of Sri Mangayarkarasi Mills P. Ltd. (supra), this also could not be allowed. 3. Now before us, learned A.R., strongly assailing the orders of lower authorities, submitted that machines, which were more than fifty years old, were replaced and there was no increase in capacity on acco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver a period of fortyfive years, nothing was brought on record to show that the replacements were of parts of machinery which were more than 50 years old. On the other hand, assessee itself has submitted that items replaced were Simplex (Speed Frames), Draw Frames (auto leveler) and Cards. Each of these, when independently considered, were not parts of any machinery, but a machinery by itself. Fur ..... X X X X Extracts X X X X X X X X Extracts X X X X
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