2011 (1) TMI 8 - SCH - Income Tax

Current Repairs - amounts spent for replacement of ring frames - claim u/s 31(i) as current repairs but AO contended that the said replacement not covered under current repairs - matter disposed off in view of CIT vs Saravana Spinning Mills Private Limited, reported in (2007 -TMI - 1775 - SUPREME COURT) and CIT vs. Ramaraju Surgical Cotton Mills, reported in (2007 -TMI - 2064 - SUPREME COURT) wherein it was held that expenditure incurred by the assessee for modernisation and replacement does not came within the connotation of the words current repairs in section 31(i).

Summary

The Supreme Court, in a 2011 judgment, granted leave and disposed of civil appeals by the Department in line with previous judgments related to income tax cases. The delay was condoned, and no costs were awarded.