2013 (1) TMI 653

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....ellant.   Present appeal under Section 260A of the Income Tax Act, 1961 (for short the 'Act') is arising out of an order passed by the Income Tax Appellate Tribunal (for short the 'Tribunal') on 26.3.2012, whereby the expenses claimed by the assessee on account of repair & maintenance were allowed though, earlier such expenses were disallowed for the reason that such expenses are capital e....

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....cern had substantially increased. Such order was set aside by the Tribunal treating such items as capital expenses by the Commissioner of Income Tax (Appeals). The learned Tribunal held that the issue whether the expenditure is capital or revenue in nature, depends on several tests. No single test is universally applicable and infallible in nature. Each item of such expenses is to be seen and cons....

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....rn a finding that the expenses incurred were not for repair and maintenance. Similarly, the ground of increase in the profitability of concern is again a totally alien to determine the nature of the repair and maintenance. Increase in profit would lead to increase in income, which would be separately taxable but could not be a ground for declining the expenses incurred by the assessee for repair a....