2014 (10) TMI 575

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....placement of machinery as current repairs? 2. Whether in the facts and circumstances of the case, the Tribunal was right in allowing a deduction of the amounts spent on replacement of machinery as revenue expenditure? 3. Whether in the facts and circumstances of the case, replacement of independent complete machinery can be treated as revenue expenditure? 4. Whether in the facts and circumstances of the case, the Tribunal was right in allowing the deduction of the amounts paid to the Rajapalayam Mills Ltd., Employees Welfare Association for the construction of Kalyanamandapam as revenue expenditure? 3. On the matter being taken up for final hearing, the learned counsel on either side would comment upon the relevancy of substantial quest....

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....nd held in favour of the Assessee, against which, the present appeal has been preferred by the Revenue. 7. It was pointed out by the learned counsel for the respondent/assessee that, in a similar case viz., M/s Rajapalayam Mills's case decided in Tax Case (Appeal) No.1008 of 2004 vide order dated 13.7.2011, on an identical question of law, the case of the Revenue was accepted. According to him, in that case, one of the sister companies donated Rs. 12,00,000/- for the very same purpose which was held by this court as "not revenue expenditre and mere donation". The relevant portion reads as under: "12. As is evident from the contention taken before the Assessing Officer, the amount of Rs. 12,00,000/- was paid by the assessee to the work....