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2018 (10) TMI 1846 - MADRAS HIGH COURTAllowable revenue expenditure - Expenditure on replacement of old machinery by purchase and installation of new machinery - HELD THAT:- A Division Bench of this Court, in the case of Super Spinning Mills Ltd., Vs. ACIT [2013 (9) TMI 88 - MADRAS HIGH COURT] considered an identical Substantial Question of Law, as framed in these appeals and after taking note of the decision of the Hon'ble Supreme Court in Saravana Spinning Mills Pvt. Ltd., and Mangayarkarasi Mills (P) Ltd., remanded the matter to the CIT (Appeals) to decide the issue as to whether the expenditure, in effect, could be treated as revenue expenditure. In the light of the legal position as enunciated in Saravana Spinning Mills Pvt. Ltd. [2007 (8) TMI 16 - SUPREME COURT] and Mangayarkarasi Mills (P) Limited [2009 (7) TMI 17 - SUPREME COURT] we are of the considered view that the matter has to be remanded for fresh consideration. Though in the case of Super Spinning Mills Ltd. [2013 (9) TMI 88 - MADRAS HIGH COURT] the Division Bench thought fit to remand the matter to CIT(A), we are of the considered view that the matter should be remanded to the Assessing Officer, since the assessee company is under liquidation and there has also been a change of name. Appeals filed by the Revenue are allowed and the orders passed by the Tribunal, the Commissioner of Income Tax (Appeals) as well as the assessment orders are set aside and the matter is remanded to the Assessing Officer for fresh consideration, who shall afford an opportunity to the assessee or the liquidator, who is incharge of liquidation proceedings, to state their case in a proper perspective and decide on the issue as to whether the expenditure, in effect, could be treated as Revenue expenditure.
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