TMI Blog2007 (1) TMI 153X X X X Extracts X X X X X X X X Extracts X X X X ..... of aluminum. The assessee uses aluminium smelters which are in operation for 24 hours. It has, as a part of its assets, 408 cells in circuit out of which almost 400 cells are in operation and the balance 8 cells are usually under repair. It has been mentioned in the order of the Commissioner of Income-tax (Appeals) relevant for the assessment year 2000-01 (I.T.A. No. 1593/2006) that to avoid disruption in production at one time, it is ensured that the cells are taken out for repairs at regular intervals. Each year a number of cells are taken out for repairs at regular intervals depending upon the behaviour of the cells, requirement of metal purity and other related matters. This also enables utilization of manpower in a uniform manner thro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Indian Income-tax Act, 1922. There is no corresponding definition of "current repairs" under the Income-tax Act, 1961. While considering the expression "current repairs", the Supreme Court approved the reasoning given by the Bombay High Court in New Sharrock Spg. and Mfg. Co. Ltd. v. CIT [1956] 30 ITR 338. The view of the Supreme Court was that "current repairs" are those which are undertaken for the purpose of preserving or maintaining an already existing asset and that such repair does not bring a new asset into existence or does not give the assessee a new or different advantage. The Bombay High Court had dissented from the view taken by the Allahabad High Court in Ramkishan Sunderlal v. CIT [1951] 19 ITR 324, but the Supreme Court pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e plant or effected any improvements in its efficiency, is an expenditure on 'current repairs' and hence allowable." We need not go as far as the Division Bench has gone in Dyer's Stone Lime Co. [1982] 136 ITR 8 (Delhi) because there has been no change of parts in the present case but only relining or reconditioning to take care of wear and tear. Quite clearly, since no new asset or new advantage has come into existence, the expenditure incurred by the assessee is a revenue expenditure only. In view of the above decisions, we do not find that any substantial question of law arises for our consideration on this issue. The second contention of learned counsel for the Revenue was that depreciation had been wrongly allowed in respect of b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessee ex parte. Accordingly, an application was filed by the assessee under section 154 of the Act. The Commissioner examined the matter and found that the contention of the assessee was well founded and it had not been served in the matter and, therefore, the Commissioner reheard the matter and passed appropriate orders. On appeal, the Tribunal was of the view that since the service was not effected upon the assessee, it would have been appropriate for the Commissioner to recall the order passed by him and then render a decision on the merits. According to the Tribunal, this is precisely what the Commissioner had done except that he had captioned the order as having been passed under section 154 of the Act. The Tribunal was of the vi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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