TMI Blog2023 (3) TMI 1056X X X X Extracts X X X X X X X X Extracts X X X X ..... were based on documents which were placed for consideration even before the Assessing Officer. Thus, we find that the conclusion arrived at by the Tribunal on the second issue does not call for interference. - ITA/95/2011 IA No.GA/1/2011 (Old No.GA/354/2011) - - - Dated:- 16-3-2023 - HON BLE JUSTICE T.S. SIVAGNANAM AND HON BLE JUSTICE HIRANMAY BHATTACHARYYA Appearance : For the Appellant : Mr. Smarajit Roychowdhury, Adv. For the Respondent : Mr. J. P. Khaitan, Sr. Adv. Mr. Sanjoy Bhowmick, Adv. Ms. Swapna Das, Adv. The Court : This appeal filed by the revenue under Section 260A of the Income Tax Act, 1961 (the Act for brevity) is directed against the order dated 30th November, 2010 passed by the Income Tax App ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner of Income Tax (Appeals) (CIT(A) treating the purchase of steel rolls for the re-rolling mills by treating the same as revenue expenditure. The Tribunal had followed the decision of the Chandigarh Bench of the Tribunal in the case of Commissioner of Income Tax vs. Malhotra Industrial Corporation and this order of the Tribunal was affirmed by the High Court of Punjab and Harayana in its decision reported in (2002) 254 ITR 635 . The facts of the case are identical to that of the facts of the case before us wherein the assessee was also a steel rolling mill. The assessee s contention was that the rolls are to be replaced frequently and the expenditure incurred should be revenue expenditure and cannot be treated as capital expendit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the air-condition machine. At the highest, he replaces a part of the air-condition machine. So is the case of the picture tube in a television set, when the picture tube is replaced the television set is not replaced, therefore, such repairs alone can come within the connotation of the word current repairs in Section 31(i) of the said Act as it stood at the material time. They are effected to preserve and maintain the asset viz., air-conditioner or carding machine. Lastly, it cannot be said that the textile mill constitutes a plant as it is one continuous process of manufacture beginning from blow room to the winding section. As stated above, different outputs flow from different segments of production like blow room, carding, combing, r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the scope of allowability of expenditure as deduction in respect of repairs made to machinery, plant or furniture by restricting it to the concept of current repairs . All repairs are not current repairs. Section 37(1) allows claims for expenditure which are not of capital nature. However, even section 37(1) excludes those items of expenditure which expressly fall in sections 30 to 36. The effect is to delimit the scope of allowability of deductions for repairs to the extent provided for in sections 30 to 36. To decide the applicability of section 31(i) the test has been wrongly applied by the High Court, but whether the expenditure is current repairs . The basic test to find out as to what would constitute current repairs is that the ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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