1992 (3) TMI 48

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....ANAVATI J.-in this reference, the question which we are required to consider is whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was justified in law in holding that the amount of Rs. 58,164 is an allowable business deduction. The question has been referred to us under section 256(1) of the Income-tax Act, 1961. The assessee-company is carrying on th....

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....ion of the assessee that the said expenditure was in the nature of revenue expenditure was accepted. Therefore, the Revenue preferred an appeal to the Income-tax Appellate Tribunal. The Tribunal agreed with the view taken by the Appellate Assistant Commissioner and dismissed the appeal. The Revenue then moved the Tribunal for referring the following question to this court : " Whether, on the fa....

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....expenditure Cannot be said to be revenue expenditure, not being in the nature of current repairs. He also drew our attention to various principles which have been laid down by courts and which are referred to in CIT v. Ashok Leyland Ltd. [1969] 72 ITR 137 (Mad) and Hylam Ltd. v. CIT [1973] 87 ITR 310 (AP). As pointed out in the case of Hylam [1973] 87 ITR 310 (AP), it is not the law that, if an en....

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....e Appellate Assistant Commissioner and the Tribunal have recorded a finding that the replacement was in the nature of current repairs. It is, therefore, not possible to say that the Tribunal did not correctly appreciate the true nature of the expenditure or the principles applicable for determining whether such expenditure can be regarded as a revenue expenditure or capital expenditure. Though the....