TMI Blog2019 (7) TMI 750X X X X Extracts X X X X X X X X Extracts X X X X ..... AS HIGH COURT] while allowing the expenditure on Research Development, after analysing the facts of assessee. Further, when the dies and moulds were attached to the machine to manufacture the designed product, the claim would fall for consideration only u/s 31 as revenue expenses. It also held that payment of entry tax has been made by the assesssee; the entry tax paid would get the adjustment as against the Sales Tax liability, consequently, any deduction would amount to total deduction. - the appeal filed by the revenue is dismissed - TCA.No.917 of 2009 - - - Dated:- 3-7-2019 - Mr. Justice T.S. Sivagnanam And Mrs. Justice V. Bhavani Subbaroyan For the Appellant : Mr. M.Swaminathan Senior Standing Counsel a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 4.The revenue does not dispute the fact that in the assessee's own case for the assessment year 2003-04, three substantial questions of law raised in this appeal were considered and they were decided against the revenue and in favour of the assessee in the decision reported in [2014] 364 ITR 0001 (Mad) [Commissioner of Income vs. TVS Motors Limited] . The Substantial Questions of law 1 to 3 herein were identical to that of the Substantial Questions of law 3 to 5 in the said appeal for the assessment year 2003-04. The Substantial Questions of law were answered against the revenue on the following terms: 28. As regards the expenditure on Research Development, after analysing the facts, the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lar product. So holding, the Tribunal held that expenditure incurred on replacement of dies and moulds was revenue in nature. It relied on the decision of Karnataka High Court in the case of Mysore Spun Concrete Pipe Pvt. Ltd, reported in 194 ITR 159 . 30. As far as this issue is concerned, learned counsel appearing for the assessee placed reliance on the decision of this Court reported in (2013) 357 ITR 720 (Mad) in the case of Super Spinning Mills Ltd., Vs. Assistant Commissioner of Income-tax related to the expenditure on replacement of the machinery parts. The assessee therein engaged in the business of manufacture and trading in cotton yarn and allied products and the assessee incurred expenditure in res ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t true that the assessee claimed depreciation on dies and moulds. Yet in the decision in the case of CIT Vs. Mahalakshmi Textile Mills Ltd., reported in (1967) 66 ITR 710 (SC) , the Apex Court pointed out that all questions whether of law or of fact, which relate to the assessment year of the assessee could be raised in any year under consideration before the Officer as well as before the Income Tax Appellate Tribunal too and if, for reasons recorded by the departmental authorities in rejecting a contention raised by the assessee, the grant of relief to an assessee is justified on another ground, the Revenue is bound to consider such claim of granting the relief. The Apex Court pointed out that the right of the assessee to the relief ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Apex Court further pointed out the example that when the picture tube in a television set is replaced, such repairs would come within the connotation of the phrase current repairs . Thus, applying these two decisions, we have no hesitation in rejecting the Revenue's appeal. We hold that the claim being considered as current repairs, the same would fall under Section 31 of the Act as current repairs. To that extent, we modify the order of the Tribunal. 33. On the question of deduction under Entry Tax, the Tribunal rightly considered the claim of the assessee for deduction of entry tax payment made by the assessee. The Assessing Officer admitted that the deduction on account of Entry Tax is allowable if ..... X X X X Extracts X X X X X X X X Extracts X X X X
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