TaxTMI 
TaxTMI 
2012 (7) TMI 18
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....t in holding that conversion charges and sundry sales does not form part of the turnover, for the purpose of calculation of deduction under Section 80HHC? (ii) Whether in the facts and circumstances of the case, the Tribunal was right in allowing a deduction of the amounts spent on replacement of independent machinery as revenue expenditure? (iii) Whether in the facts and circumstances of the case, the Tribunal was right in holding that the profit margin of goods captively consumed is to be excluded for the purpose of deduction under Section 80HH? (iv) Whether in the facts and circumstances of the case, the Tribunal was right in allowing depreciation on the windmills when the actual commissioning of the windmill took place only aft....
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....ner of Income Tax (Appeals) held that the addition of sum of Rs.7,32,277/- was in order and disallowed the claim on the expenditure incurred on the purchase of new machinery. Thus, the Commissioner of Income Tax (Appeal) took the view that replacement had brought about enduring benefit by the installation of new machines, the expenditure was capital in nature. 4. As far as the expenditure incurred on replacement of SS Shell and SS 304 Shell is concerned, the Income Tax Officer pointed out that the assessee got this fabricated and packed with refractories, bricks etc. The Commissioner of Income Tax (Appeals) held that the assessee had replaced the machines purchased from outside parties and they being independent machinery, they could not....
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....th regard to wind mill as well as with regard to transfer price of brass powder and copper powder to the gold bronze unit which was increased by including the gross profit. The Tribunal upheld the contention of the assessee in respect of all the claims. As regards the Revenue's appeal, the depreciation claim on wind mills was however rejected by accepting the fact that the State Electricity Board had given a certificate that the wind mill was commissioned. As regards the replacement of certain machinery, considered as revenue expenditure, the Tribunal confirmed the order of the Commissioner of Income Tax (Appeals) and hence the present appeal. 8. As far as the claim on depreciation on wind mill is concerned, considering the fact that the....
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....e order of the Commissioner of Income Tax (Appeals) that the Commissioner of Income Tax (Appeals) pointed out that it related to scraps from manufactured goods by the assessee. Being a sale, it formed part of the turnover. In considering the said issue, the Tribunal however referred to the decision of this Court reported in 257 ITR 60 - CIT v. MADRAS MOTORS LIMITED. However, considering the decision of the Apex Court reported in 295 ITR 228 - CIT v. RAVINDRANATHAN NAIR, we have no hesitation in applying the said decision to sundry sales. The sundry sales being part of the gross total income as profit of the business, the same has to be included in the total turnover. Thus, applying the decision of the Apex Court referred to above, as far as....