2009 (12) TMI 967

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.... JUDGMENT K. Raviraja Pandian, J. The revenue has come up on appeal against the order of the Income Tax Appellate Tribunal, Madras 'A' Bench, dated 28.1.2004 passed in I.T.A.No.16/Mds/1997 in respect of the assessment year 1993-94 by formulating the following substantial questions of law: "(1). Whether in the facts and circumstances of the case, the Tribunal was right in a....

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....iled its return and the assessing officer inter alia disallowed the claim of the assessee in respect of replacement expenditure of autoconer etc. The assessing officer has found that the claim of the assessee that it had sold the old machinery and brought a new one was found to be false. Assessing Officer held that the purchase of new machinery cannot be treated as a revenue expenditure. Since the....

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....tax Appellate Tribunal and the Tribunal dismissed the appeal holding that the expenditure incurred is with respect to replacement and the same is revenue expenditure. The Tribunal also upheld the decision of the CIT(A) with respect to the computation of the deduction under Section 80I. Aggrieved by the order of the Income-tax Appellate Tribunal, the present appeal is filed by the revenue. 3. It....

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.... for consideration by following dictum laid down by the Supreme Court in the case of COMMISSIONER OF INCOME-TAX VS. RAMARAJU SURGICAL COTTON MILLS reported in (2007) 294 ITR 328 and COMMISSIONER OF INCOME-TAX VS. SARAVANA SPINNING MILLS PRIVATE LIMITED reported in (2007) 293 ITR 201. 4. In the light of the order passed by the Supreme Court in the above said decision, in respect of the three que....