2018 (1) TMI 1309

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....ABLE MS.JUSTICE HARSHA DEVANI) 1. By this appeal under section 260A of the Income Tax Act, 1961 (hereinafter referred to as 'the Act') the appellant revenue has challenged the order dated 6.4.2017 made by the Income Tax Appellate Tribunal, Ahmedabad 'D' Bench (hereinafter referred to as 'the Tribunal') in ITA No.2433/ Ahd/ 2012, by proposing the following question, stated to be a substantial qu....

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....or change in the cost of dies and tools as proportional gain on turnover in the year under consideration vis-à-vis the preceding year, where there no such disallowance was made in the assessment. The Assessing Officer, made addition of Rs. 75,45,539/- and Rs. 90,72,160/- respectively, by considering consumption of dies and tools and machinery spares to be capital expenditure. The assessee w....

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.... to having short life, which had been accepted by the revenue in the earlier years, the Commissioner (Appeals) held that the expenditure incurred on dies and tools to be revenue expenditure. 4. Insofar as the treatment of consumption of machinery spares as capital expenditure in respect of which addition of Rs. 90,72,160/- had been made is concerned, the Commissioner (Appeals) noted that such e....

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....nditure in the nature of revenue expenditure. 5. The Tribunal, in the impugned order, had concurred with the findings recorded by the Commissioner (Appeals). 6. Mr. M. R. Bhatt, senior advocate, learned counsel for the appellant, assailed the impugned order on the grounds set out in the memorandum of appeal and on the reasoning adopted by the Assessing Officer in the assessment order. 7. ....