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TMI Blog2008 (1) TMI 583X X X X Extracts X X X X X X X X Extracts X X X X ..... . Manjunath J.- This appeal is by the Revenue challenging the findings of the Income-tax Appellate Tribunal, Bangalore Bench "A" in I.T.A. No. 695/Bang/2000 for the assessment year 1996-97 wherein the Tribunal has reversed the findings of the Assessing Officer and also the order passed by the Commissioner of Income-tax (Appeals) raising the following substantial question of law. (i) Whether the T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -tax (Appeals) which came to be dismissed against which a further appeal was filed before the Income-tax Appellate Tribunal. The Tribunal after considering the fact that the assessee instead of repairing the sound system had installed dolby system held that such change of stereo would amount to revenue expenditure and not a capital expenditure. Accordingly, the appeal was allowed. Aggrieved by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pearing for the assessee relying upon the judgments of the hon'ble Supreme Court in CIT v. Ramaraju Surgical Cotton Mills [2007] 294 ITR 328 and in Empire Jute Co. Ltd. v. CIT [1980] 124 ITR 1 (SC) contends that even if a new machinery is replaced, the test has to be applied in order to consider whether the expenditure is of revenue in nature or capital. Considering that the old stereo syste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 31(1) is only for current repairs ; whether such expenditure incurred by the assessee conceptually is revenue or capital in nature was not relevant to decide the question as to whether such expenditure comes within the etymological meaning of the expression "current repairs". Therefore, it further held that even if the expenditure is revenue in nature, it would not fall in the connotation of cu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... em and by introducing such system if the assessee has not increased its income in any way, we cannot consider such change of sound system as capital in nature. According to us, instead of repairing the existing old stereo system, the assessee has installed dolby stereo system. This has not benefited the assessee in any way with regard to its total income since there is no change in the seating cap ..... X X X X Extracts X X X X X X X X Extracts X X X X
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