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2013 (8) TMI 1105

. All the three appeals since challenge the impugned common judgment and order dated 27.11.2012 of the Income Tax Appellate Tribunal (hereinafter referred to as the Tribunal ) and all of them raise common substantial questions of law, they are being decided by this common order. 2. Tax Appeal No.506 of 2013 concerns Assessment Year 2007-08. The Tribunal dismissed the appeal preferred by the Revenue against the order passed by CIT(Appeals) directing the deletion of ₹ 34,29,000/- added by the Assessing Officer on account of disallowance of capital expenditure debited to Profit & Loss account against the head Purchase of Tools and Instruments . 2.1 Tax Appeal No.505 of 2013 relates to Assessment Year 2008-09 whereby the appeal prefer .....

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such additions, however, for rest of the two years it confirmed the additions on the ground that in the very case of the assessee for the Assessment year 1998-99 the very issue was treated and considered as capital expenditure. 5. When this was further challenged before the Tribunal in Assessment Year 2007-08 by preferring ITA No.2457 of 2010 the Tribunal confirmed the order of the CIT(Appeals) by considering the decision of Coordinate Bench as also by giving cogent reasons for treating such expenditure as revenue in nature. 6. This decision came to be followed in subsequent years by the Tribunal. Aggrieved by this approach of the Tribunal, the Revenue has challenged the same in these Tax Appeals proposing the following substantial question .....

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e opinion that the assessee should not have valued them by adopting the estimated useful life method, but should have written off the items in the Profit & Loss Account. However, in the year under consideration, the Tribunal noted that the assessee had not valued the stock of consumables and considered the same as part of closing stock of inventory and had written it off to the Profit & Loss Account. 9. Again, the Tribunal also had noted that none of these items of consumables had a life of more than a very few days. The total quantity consumed also had fortified the fact that each item had a very short span. Thus, from the very nature of item and from the very process of consumption in the ordinary course of manufacturing business, .....

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