2006 (2) TMI 115

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... above tax case appeal is directed against the order of the Income-tax Appellate Tribunal in I.T.A. No. 562 of 2002 dated August 18, 2005. The Revenue is the appellant. The assessee is a co-operative society engaged in the business of spinning mill. They have filed their return for the assessment year 1994-95. Their claim with regard to the expenditure towards remodelling of the generator as re....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....lacement of machinery by applying the decision of this court in CIT v. Janakiram Mills Ltd. [2005] 275 ITR 403 and contribution to the ESI on April 21,1994, by following the decision of this court in CIT v. Shri Ganapathy Mills Co. Ltd. [2000] 243 ITR 879 (Mad). Aggrieved by the same, the Revenue has preferred the above appeal raising the following substantial questions of law: "1. Whether, ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....be disallowed. The Supreme Court in CIT v. Kalyanji Mavji and Co. [1980] 122 ITR 49, held that no new asset was brought into existence nor was an advantage for the enduring benefit of the business acquired by the expenditure, and the expenditure was revenue in character. Following the above decision, the Delhi High Court in CIT v. Delhi Cloth and General Mills Co. Ltd. [1981] 131 ITR 641, held ....