2013 (2) TMI 883

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.... 1. In this appeal for the assessment year 2001-02, the revenue has raised the following reframed questions of law for our consideration:- (a) Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in deleting the disallowance of ₹ 1,00,000/- being the amount written off by the assessee on account of inter corporate deposits (ICD) ? (b) Wheth....

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....ibunal was justified in allowing claim of warranty provision when the assessee has failed to make scientific and reliable estimate of the liability ? (f) Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in deleting the disallowance of ₹ 2,17,38,129/- on account of account of stock written off being only a provision made for diminution in sto....

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.... as question (b) is concerned, the assessee had spent ₹ 2.72 crores on repairs to factory building and disallowed the expenditure on the ground that these were in the nature of capital expenditure resulting in enduring benefit and, therefore, it could not be allowed as revenue expenditure. The CIT(A) upheld the disallowance made by the assessing officer. In appeal, the Tribunal held that the....

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....is carried out by them and any material which does not move for a period of 12 to 24 months is written off at 50% of the book value and at 100% of book value if it has not moved for more than 24 months and thereafter sold as a scrap and the income thereof is offered to tax. Before the Tribunal, the respondent assessee had pointed out that similar dispute has arisen in the assessee's own case f....