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2012 (5) TMI 395 - ITAT INDORERevenue or capital expenditure - current repairs u/s 31 - overhead expenditure on construction - held that:- total replacement of damaged machinery/ship or an asset may not constitute repair. - but substitution of old/worn out parts of a machine/building/factory etc. is an expenditure of deductible nature, meaning thereby for claiming the deduction under the provisions of this Act, no new asset should come into existence and the expenditure must have been incurred on the existing asset. - Decided in favor of assessee. Claim of bad debts - held that:- there is uncontroverted finding in the impugned order that the assessee in fact write off the bad debt in its books of accounts. - after 1.4.1989, it is not necessary for the assessee to establish that the debt in fact has become irrecoverable, it is enough if the bad debt is written off as irrecoverable in accounts of the assessee. - Decided in favor of assessee.
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