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TMI Blog2012 (9) TMI 161X X X X Extracts X X X X X X X X Extracts X X X X ..... each separate machinery was held to be an independent entity - Replacement of an old machine with a new one would constitute the bringing into existence of a new asset and not repair of the existing machine as asset gives the purchaser (assessee) an enduring benefit of better and more efficient production over a period of time. Such replacement of assets was held to be not amounting to "current re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der" by an "Auto Coner 238". The replacement of such machinery was in addition to the existing plant and machinery and the claim of revenue expenditure was rejected on the premise that the same was capital in nature. 2. The assessee successfully challenged the order of the Assessing Officer before the first appellate authority. The first appellate authority relied on a decision of the Hon'ble Su ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cone winder is that it can run at a very high speed and it can reduce the man power requirement substantially by replacing the work done by engaging labour with machines" and other findings whether is not the expenditure capital in nature? iii) Whether, on the facts and in the circumstances of the case will not an expenditure which reduces revenue expenditure recurring or otherwise amount to c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the words "current repairs" and held that the entire textile mill machinery for spinning yarn cannot be regarded as a single asset and each separate machinery was held to be an independent entity, though all machines put together constitute the production process. Replacement of an old machine with a new one would constitute the bringing into existence of a new asset in place of the old one and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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