Retrospective cancellation of charitable registration under section 12AB(4) was unsustainable; related-party benefit allegations did not prove nongenu...
Merger control notice and disclosure rules: Supreme Court limits penalties, rejects reopening of approved combination, and sets aside adverse findings...
Replacement expenditure on machinery could not be treated as current repairs merely because the Tribunal relied on a precedent later reversed by the Supreme Court. In a textile mill, each machine is an independent asset, so replacement does not automatically amount to preservation or maintenance of a single composite machine. The assessee had to satisfy the Supreme Court's test for current repairs, including the principles in Mahalakshmi Textile Mills, but the Tribunal had not undertaken that examination. The issue whether the expenditure was revenue or capital was therefore remitted to the appellate authority for fresh adjudication after allowing the assessee to place the necessary material.
Replacement expenditure on machinery could not be treated as current repairs merely because the Tribunal relied on a precedent later reversed by the Supreme Court. In a textile mill, each machine is an independent asset, so replacement does not automatically amount to preservation or maintenance of a single composite machine. The assessee had to satisfy the Supreme Court's test for current repairs, including the principles in Mahalakshmi Textile Mills, but the Tribunal had not undertaken that examination. The issue whether the expenditure was revenue or capital was therefore remitted to the appellate authority for fresh adjudication after allowing the assessee to place the necessary material.
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
TaxTMI 
of 4809 
Join Channel 
