2015 (10) TMI 2438

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....sh S Mutagar, Ld. DR ORDER Per George Mathan 1. This is an appeal filed by the Revenue against the order of CIT(A), Panaji-1 in ITA No. 196/MRG/09-10 dt. 23.3.2015 for the A.Y 2007-08. Shri Ramesh S. Mutagar, ld. DR represented on behalf of the Revenue and Shri Pramod Y. Vaidya, Advocate alongwith Shri Lorence J. Malekar, CA and Shri Manjunath M. Hegde, CA represented on behalf of the Ass....

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....said expenditure to be a capital expenditure. It was the submission that on appeal, the ld. CIT(A) had directed that the expenditure was liable to be treated as a Revenue expenditure and that it qualified as current repairs. It was the submission that the order of the ld. CIT(A) was liable to be reversed insofar as the expenditure incurred by the Assessee was on the capital field. 3. In reply, ....

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....he paper book. It was the submission that the said expenditure was, in fact, a replacement of the MDSI controller, which was low memory controller, with high memory controller. It was the submission that the whole machinery was not changed. It was only the controller that was changed. It was the submission that the order of the ld. CIT(A) was liable to be upheld. He placed reliance on the various ....

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....t of the controller alone in 2007-08 is at a cost of Rs. 35 lacs. The Assessee in its written submission has also categorically admitted that the said replacement was due to technological advancement and for increasing the efficiency. Thus, it becomes clear that the said lathe by this replacement has become more efficient thereby resulting in increase in the capacity and getting extended life. Thi....