Reopening of assessment cannot rest solely on an audit party's opinion; reassessment under Section 147/148 is impermissible and power of revision shou...
Tested party selection: functional analysis identified the least complex unit as the appropriate tested party, altering the transfer pricing adjustmen...
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 4816 
Join Channel 
