TMI Blog2016 (7) TMI 274X X X X Extracts X X X X X X X X Extracts X X X X ..... l Member And Shri Waseem Ahmed, Accountant Member For the Appellant : DEbasish Roy, JCIT, SR-DR For the Respondent : Shri Soumitra Chowdhury, Advocate ORDER Per Waseem Ahmed, Accountant Member This appeal by the Revenue is arising out of order of Commissioner of Income Tax (Appeals)-IV, Kolkata in appeal No.77/CIT(A)-I/200-11 dated 15.03.2013. Assessment was framed by DCIT, Circle-4, Kolkata u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as the Act ) vide his order dated 21.12.2010 for assessment year 2008-09. 2. Sole issue raised by Revenue is as regards that Ld. CIT(A) erred in deleting the disallowance of claim for the expenditure on account of major repairs maintenance for ₹ 247.63 lacs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere completely worn out. However the AO disagreed with the claim of the assessee on the ground that such expenses are enduring in nature so it cannot be claimed as deduction by showing as revenue expenditure. Accordingly the AO disallowed the claim of the assessee for the major repair expenses of ₹ 247.63 lacs and added to the total income of the assessee. 4. Aggrieved, assessee preferred an appeal to Ld CIT(A) who deleted the addition made by the AO by observing as under 3.4 Similar issue also came up in the case of the appellant for A.Y 2007-08 wherein my predecessor in appeal No.200/CIT(A)-IV/2009-10 dated 29.06.2011 has held that the entire expenditure was revenue in nature and thereby allowable. As the facts and circumsta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e context of capital asset where these are used and also form a small fraction of the total value of corresponding capital asset in each case. He certified the expenses and summarized section wise as under: 1. Lime Stone Captive Quarry ₹ 27.15 lacs 2. Crushing Section ₹ 45.53 3. Raw Mill Sections Rs.224.90 4. Kiln ₹ 79.89 5. Coal Mill ₹ 25.10 6. Clinker Grinding Section ₹ 60.24 7. Slag Grinding Section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iii) Current repairs do not mean only petty repairs or repairs necessitated by wear and tear during the particular year. iv) Such repairs should not bring into existence nor obtain a new or different advantage. v) The quantum of expenditure nor the fact that in the process of repairs, there was substantial replacement of the parts of machine or ship is decisive of the true nature of the expenditure. vi) The original cost of the asset is not at all relevant for ascertainment of the true nature of the expenditure on repairs. vii) The replacement cost of the asset may however, at times may be used as indicator of the true character of the expenditure. If the expenditure on repair added to the written down value or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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