1985 (10) TMI 85

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....reference application, the following question of law has been referred for the opinion of this court: " Whether, on the facts and in the circumstances of the case, the income-tax Appellate Tribunal was right in holding that the expenditure of Rs. 31,108 incurred by the assessee on replacement of tin shed was revenue expenditure and admissible under the Income-tax Act, 1961 ? " Briefly stated....

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....n appeal before the Appellate Assistant Commissioner but the appeal was also dismissed on similar grounds. The assessee further preferred an appeal before the Income-tax Appellate Tribunal and contended that the said expenditure was incurred as part of its profit-earning process and not for enduring benefit or advantage. It was contended that the expenditure was either allowable as current repairs....

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..... v. ITO [1977] 108 ITR 620 (AP) and Permali Wallace Ltd. v. CIT [1985] 151 ITR 43 (MP). In the aforesaid cases, it was held that the repairs carried out by the assessee would not strictly come under the purview of renovation and that the expenditure was allowable as revenue expenditure. In the case of CIT v. Mahalakshmi Textile Mills Ltd. [1967] 66 ITR 710, the Hon'ble Supreme Court observed that....