TMI Blog1985 (10) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... n of this court: " Whether, on the facts and in the circumstances of the case, the income-tax Appellate Tribunal was right in holding that the expenditure of Rs. 31,108 incurred by the assessee on replacement of tin shed was revenue expenditure and admissible under the Income-tax Act, 1961 ? " Briefly stated, the facts of the case are that the assessee is a firm which crushes oil seeds and pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on similar grounds. The assessee further preferred an appeal before the Income-tax Appellate Tribunal and contended that the said expenditure was incurred as part of its profit-earning process and not for enduring benefit or advantage. It was contended that the expenditure was either allowable as current repairs or under section 37 of the Act. The learned Tribunal accepted the aforesaid contention ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... In the aforesaid cases, it was held that the repairs carried out by the assessee would not strictly come under the purview of renovation and that the expenditure was allowable as revenue expenditure. In the case of CIT v. Mahalakshmi Textile Mills Ltd. [1967] 66 ITR 710, the Hon'ble Supreme Court observed that the current repairs to the plant and machinery is an allowable expenditure. On the basi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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