2008 (9) TMI 109 - HC - Income Tax

Whether Tribunal was justified in holding that the amount was allowable deduction as current repairs of plant and machinery under Section 31(1) or as revenue expenditures incurred wholly laid out for the purpose of business under Section 37(1), by considering the entire plant as one single unit Held, yes in view of decision of SC in CIT, Madurai Vs. Saravana Spinning Mills (P.) Ltd., question is answered in favour of the assessee, and the appeal of revenue is dismissed.

Summary

The High Court Rajasthan dismissed the Revenue's appeal regarding the deduction claimed for current repairs of plant and machinery, citing a judgment in favor of the assessee based on findings by lower authorities. The appeal was admitted on the substantial question of law related to the deduction under Sections 31(1) and 37(1) of the Income Tax Act of 1961.