Capital of Revenue expenditure - Disallwance of expenditure - Replacement of machinery - Whether the replacement of machinery parts will amount to revenue expenditure or not - Held that - in considering the claim of the assessee, the decision must be guided by business prudency of the necessity or expediency which compel the assessee to carry on such repairs/replacement and if this repair ultimately has gone in for bettering its business profits in the nature of increasing its profits, as held by the Supreme Court in the case of CIT Vs Ramaraju Surgicial Cotton Mills 2007 (8) TMI 39 - SUPREME COURT OF INDIA through increase in the production capacity, then the outlay, not being just to carry on the business to earn profit out of its existence, but to enlarge its profit-earning capacity, the expenditure may fall for consideration under the head of capital expenditure - Even though the assessee has furnished list of items chart, the data which are available were not available before any of the Appellate Authorities for coming to the right conclusion herein - Hence, the proper course herein is to set aside the order of the Income Tax Appellate Tribunal and remit the matter back to the Commissioner of Income Tax (Appeals) for de novo consideration - Decided in favour of assessee............................... Income Tax - Case Law
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