2003 (3) TMI 81

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nt year is 1986-87. The questions referred to us for our consideration are By the Revenue: "Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in upholding the Commissioner of Income-tax (Appeals) finding that the cost of installation of overhead cleaner, speed frames and humidification plant is capital expenditure (sic)?" By the assessee: "W....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....xpenditure by reason of that fact, by the Commissioner. That view of the Commissioner has been affirmed by the Tribunal. That view is also in accordance with what has been held by this court in a case concerning the same assessee for an earlier assessment year in T.C. No. 672 of 1990 (CIT v. Sakthi Textiles Ltd. [2001] 250 ITR 449). We, therefore, do not find any error in that finding of the Tribu....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... reason of a more modern system having been installed, nevertheless the purpose which was to be served was the same as that which was being served by the semi-automatic system which was replaced by the more modem system. The expenditure incurred on humidification plant is, therefore, expenditure in the revenue field and the finding to that effect by the Tribunal is not erroneous. Regarding the ....