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TMI Blog2018 (5) TMI 1988X X X X Extracts X X X X X X X X Extracts X X X X ..... d.Commissioner of Income Tax (Appeals) in disallowing repairs and maintenance expenses of Rs. 14,22,840/- on the ground that it is capital in nature despite the fact that no enduring benefit was available to the assessee. 3. Succinct facts are that the assessee company has claimed Rs. 1,16,79,270/- as repairs to plant and machinery. On verification of the details, the Assessing Officer (AO) was of the view that various expenditure as detailed in the table given at assessment order page 2 in respect of 17 items aggregating to the amount of Rs. 50,72,199/- are relates to work carried out by the assessee which are definitely capable of giving benefits of enduring nature, therefore, by placing reliance on the decision of Hon'ble Gujarat Hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ricated or manufactured. If the Assessee's Representative himself has used the "word fabrication" then it cannot be said that fabrication was done of any existing assets. As a result of fabrication, only new asset will come into existence and there cannot be fabrication of any existing asset. In view of these facts, the CIT(A) held that the expenditure of Rs. 14,22,840/- is of capital in nature and therefore, the AO is directed to allow the depreciation on these capital expenditure incurred for fabrication / erections of the asset at the applicable rate and added back the remaining amount to the total income of the appellant. However, the balance addition out of total addition made by the AO was deleted. 5. Being aggrieved, the assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nature. However, in the case of present case, the facts has brought out by the ld.CIT(A) which in respect of fabrication/erection of port machinery, hence the expenditure incurred in the field of capital. The ld.CIT(A) observed that expenditure has been incurred in relation to fabrication and erection in form of new asset and laying new pipe line and structure for maintaining the Jetty in working condition, therefore such fabrication expenditure mean something which is fabricated or manufactured. The assessee himself has used the "word fabrication" then it cannot be said that fabrication was done of any existing assets. Therefore, as a result of fabrication new asset will come into existence, hence, the expenditure of Rs. 14,22,840/- incur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in ITA no.3077 to 3079 and 3115 to 3120/Ahd/2011 dated 13.11.2017. The ld.Senior Departmental Representative has also concurred with the submission of the ld.Counsel of the assessee. 10. We have considered facts and find that the Tribunal in the aforesaid case (supra) in para 9 has observed as under : "9. Learned Departmental Representative fails to dispute the crucial fact that the assessee had in fact disclosed all its depreciation details in Form 3CD Annexure 1A. Her case however is that Section 149(l)(b) envisages time limit for issuing Section 148 notice to be between four years to six years squarely applies in facts of the instant case. We find no merit in the instant argument as the above statutory provision does not operate as an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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