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TMI Blog2009 (4) TMI 399X X X X Extracts X X X X X X X X Extracts X X X X ..... dure contemplated therein disallowed seven categories of machines valued at Rs. 532.27 lakhs claimed as revenue expenditure and treated it as capital expenditure and also depreciation at the rate of 25%. The matter was taken up before the Commissioner of Income-tax (Appeals), who partly allowed the claim of the assessee. The Tribunal remanded the matter to the Commissioner (Appeals) for reconsideration of issue as to whether replacement of machinery could be regarded as revenue or capital expenditure in terms of the decisions of Supreme Court held that the ingredient of section 147 of the Act has been fulfilled, there is no scope of inquiry. Held that- dismissing the appeal, that once the matter was agreed to be settled before the Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ngaged in the business of manufacture and sale of cotton yarns. For the assessment year 2000-01, the assessee-company filed return of income on November 29, 2000, admitting a total income of Rs. 84,05,000 under the normal computation and Rs. 1,35,23,360 as book profit under section 115JA. The return of income was assessed under section 143(1) on November 27, 2000. The Assessing Officer has initiated reassessment proceedings by issuing notice under section 148 and following the procedure contemplated therein disallowed seven categories of machines valued at Rs. 532.27 lakhs claimed as revenue expenditure and treated it as capital expenditure and also depreciation at the rate of 25%. 3. The matter was taken up before the Commissioner of I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Tribunal, we are of the view that the correctness of the reopening of the assessment under section 147 does not arise for consideration because on the merits it was the stand of the assessee before the Tribunal that the matter required to be reconsidered by the Commissioner of Income-tax (Appeals). In order to be very specific, paragraph 6 of the order of the Tribunal is reproduced here: "6. In the facts of the present case also we find that the relevant details were not made available. As such the different tests to ascertain with exactitude the real nature of the expenditure cannot be applied. Both the parties agreed that the matter may be remitted to the Commissioner of Income-tax (Appeals) for fresh adjudication." 6. When ..... X X X X Extracts X X X X X X X X Extracts X X X X
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