2013 (8) TMI 1105

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....d the appeal preferred by the Revenue against the order passed by CIT(Appeals) directing the deletion of ₹ 34,29,000/- added by the Assessing Officer on account of disallowance of capital expenditure debited to Profit & Loss account against the head "Purchase of Tools and Instruments". 2.1 Tax Appeal No.505 of 2013 relates to Assessment Year 2008-09 whereby the appeal preferred by the assessee has been allowed quashing and setting aside the order of CIT(Appeals), which confirmed the action of the Assessing Officer in making addition of ₹ 27,35,460/- by disallowing the revenue expenses claimed in Profit & Loss account for the purchase of tools and instruments. 2.2 Tax Appeal No.507 of 2013 relates to Assessment year 2009-20....

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....rmed the order of the CIT(Appeals) by considering the decision of Coordinate Bench as also by giving cogent reasons for treating such expenditure as revenue in nature. 6. This decision came to be followed in subsequent years by the Tribunal. Aggrieved by this approach of the Tribunal, the Revenue has challenged the same in these Tax Appeals proposing the following substantial questions of law for our consideration: "Whether, on the facts and in the circumstances of the case, the tribunal was right in not following its own decision in assessee's own case for A.Y. 1998-99 and deleting the addition made on account of expenditure incurred for the purchase of tools and instruments and also ignoring the ratio laid down in the Hon'ble Supreme....