2013 (11) TMI 1372

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.... the orders of Tribunal dated 14.09.2012 for the assessment year 2007-08. 2. The respondent assessee is engaged in the business of manufacturing procured tread rubber. When there was sudden increase in the expenses, compared to the previous year, with reference to 90,44,917/- under the head "repair and maintenance", assessee was asked to explain the sudden increase in the expenses. According to....

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.... CIT(Appeals) held that the expenditure incurred by the assessee is a repair expense as the machinery is not replaced but only overhauled and the appeal came to be allowed. 3. Aggrieved by the same, revenue approached the Tribunal in I.T.A No.280 of 2010 so far as assessment year 2007-08. By a common order, Tribunal disposed of ITA No.467/09 filed by the assessee pertaining to the assessment ye....

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....nction of the unit was shown. As per the technical report and the detailed explanation, the mixing chamber (chamber assembly) seems to be one of the integral part of the intermix machine. This chamber assembly is fixed to the bed plate below the top cylinder. The rotors inside the mixing chamber of the internal mixer rotate in opposite directions thereby the ingredients would getmixed and ultimate....

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.... Mills has to be understood with reference to the actual functioning of the unit. Therefore after referring to the relevant paragraph of Sharavan Spinning Mills case that so far as replacement of chamber assembly which is an integral part of intermix machine Tribunal concluded that it is nothing but a current repair and not a capital expenditure. We find no good ground to differ from the opinio....