9911796707
TMI Blog2009 (12) TMI 105X X X X Extracts X X X X X X X X Extracts X X X X ..... extent of Rs.6,19,43,673/- was disallowed – CIT(A) partly allowed the claimed – ITAT disallowed the deduction of expenditure following the decision of supreme court in the matter of MANGAYARKARASI MILLS (P) LTD [2009 -TMI - 34189 - SUPREME COURT] – held that - . When the matter is remitted to the first appellate authority, there is no harm in allowing the assessee to give additional materials about the additional machinery, for which they are claiming benefit under Section 37 of the Income-tax Act. Even in the case of Ramaraju Surgical Cotton Mills reported in [Ramaraju Surgical Cotton M] such a direction is given to the authorities to re-consider the issue on the basis of the materials produced before the authorities by both the parties – ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... decision in the case of Mangayarkarasi Mills (P) Limited? 2. Whether, in the facts and circumstances of the case, the test of enduring benefit is the only criteria in determining whether expenditure is capital or revenue in nature? 3. Whether, in the facts and circumstances of the case, the treatment in the books of accounts should be the parameter in determining the allowability of an item of expenditure under the provisions of the Income Tax Act, 1961? 4. Whether, in the facts and circumstances of the case, the Income Tax Appellate Tribunal is right in presuming that the facts of the instant case is on par with the facts of the decision of the Honourable Supreme Court in the case of M/s.Mangayarkarasi Mills (P) Limited, without pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missioner of Income Tax (Appeals). On further appeal, the Income Tax Appellate Tribunal, Chennai vide its order dated26.7.2002 in I.T.A.No.1412(Mds)/2000, remanded the issue to the assessing officer with certain directions. In the remand assessment proceedings before the assessing officer, the respondent made detailed submissions vide its letters dated 11.2.2004, 9.3.2004 and 10.3.2004. The remand assessment was made on 11.3.2004 under Section143(3) read with Section 254 by disallowing the replacement of expenditure of Rs.5,79,77,288/- as revenue expenditure. Aggrieved by the order of the assessing officer, the assessee preferred an appeal before the Commissioner of Income Tax (Appeals), who vide order in I.T.A.No.83/04-05 allowed the expen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he case of Commissioner of Income Tax vs. Saravana Spinning Mills Pvt Ltd reported in [2007] 293 ITR 201 in respect of current repairs. Thereafter in the case of Ramaraju Surgical Cotton Mills reported in [2007] 294 ITR 328 and with reference to Section 31 in the case of Commissioner of Income Tax vs. Sri Mangayarkarasi Mills P. Ltd reported in 315 ITR 114. Lastly, it was stated across the bar that the Supreme Court in the case of COMMISSIONER OF INCOME-TAX, COIMBATORE VS. M/S.HINDUSTAN TEXTILES (S.L.P.(Civil) No.2037 of 2009 dated 3.11.2009 has considered all the three earlier judgments of Supreme Court and remanded the matter to reconsider the issue as per the direction given as to the enhancement of production capacity and record a findi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e basis of the materials produced before the authorities by both the parties. 7. Accordingly, the appeals are disposed of and the order of both the Assessing Officer and the Commissioner of Income Tax Appeals are set aside and the matter is remitted back to the Commissioner of Income Tax (Appeals) to reconsider the issue in the light of the directions given by the Supreme Court in the above said cases by directing the Commissioner of Income Tax (Appeals) to decide the issue in accordance with law after giving an opportunity to the assessee for producing additional material in respect of the machinery acquired during the relevant period. As we are remitting back to the authorities, the questions of law are not answered by us. Consequently ..... X X X X Extracts X X X X X X X X Extracts X X X X
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