2014 (8) TMI 460

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ome Tax Dept. For the Respondents : Mr. R. Sivaraman ORDER (Judgment of the Court was made by R. Sudhakar,J.) These appeals filed by the Revenue are directed against the orders passed by the Income Tax Appellate Tribunal dated 29.08.2013 in ITA.No.603/Mds/2013 and 30.8.2013 in I.T.A.Nos.606 to 608/Mds/2013. 2. The respondents/assessees are carrying on business in manufacturing of ya....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....The CIT (Appeals), dismissed the appeals as against which, the assessees filed appeals before the Income Tax Appellate Tribunal. 3. The Tribunal, following its earlier orders in I.T.A.Nos.1847 & 1848/Mds/2011 allowed the appeals holding that the expenditure incurred by the assessees in introducing 'compact spinning system' in the place of 'conventional drafting system' is revenu....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....Spinning Mills Ltd., Vs. Assistant Commissioner of Income-tax held as follows: "8. In the case of Super Spinning Mills Vs. Assisstant Commissioner of Income Tax reported in (2013) 357 ITR 720 (Mad), considering the decisions of the Apex Court in the case of CIT Vs. Mahalakshmi Textile Mills Ltd., reported in (1967) 66 ITR 710 (SC), in the case of CIT Vs.Ramaraju Surgical Cotton Mills reported i....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ge. Thus elaborating on the provisions of Section 31 of the Act and Section 37 of the Act, this Court held that the Authority has to pass an order on the impact of replaced materials on the business as well as functioning of the machinery after replacement to result in the higher productivity or not. In the instant case, the Tribunal directed the Assessing Officer to find out as to whether the mac....