2015 (10) TMI 2438

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....ge 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 Assessee. 2. It was submitted by the ld. DR t....

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.... 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, the ld. AR submitted that in 2001 the Assessee ....

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....aid 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 case laws. 4. We have considered the rival sub....

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.... 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. This is nothing but in the capital field. Thus, the ....