2018 (1) TMI 1321

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....ating the current repairs as Capital expenditure without appreciating that the same were in nature of repairs and therefore was Revenue expenditure. 2. On the facts and circumstances of the case, the Id. Commissioner of Income Tax (Appeals) erred in confirming the disallowance of Rs. 97,162/- being 15% of Vehicle expenses on ad-hoc basis without pin-pointing any specific defects or instances. 3. Learned AR placed on record the order of the Tribunal in assessee's own case for A.Y.2011-12 wherein issue No.1 has been decided by the Tribunal in assessee's favour vide order dated 24/11/2016. The precise observation of the Tribunal was as under:- 4. We have heard rival contentions and gone through the facts and circumstances of the case.....

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....re, it would be treated as replacement of those parts when they are not used independently and the expenditure would be liable to deduction under Section 37(1). Similarly, Hon'ble Gujarat High Court in the case of CIT Vs. Udaipur Distillery Co. Ltd. 268 ITR 451(Guj), wherein it was held that purchase of transformers in replacement of existing transformer, which could not be used independently, falls within the category of revenue expenditure and hence, is an allowable deduction under Section 37(1) of the Act. These expenditures are, thus, treated as Revenue expenditure. 5. We find that in the present case the expenditure was incurred on repairs, reinforcement, replacement of dilapidated beams, pillars, walls, etc., of the existing pr....