9911796707
TMI Blog2012 (11) TMI 334X X X X Extracts X X X X X X X X Extracts X X X X ..... ital expenditure – in favor of assessee - I.T.A. No. 5031/Del/2011 - - - Dated:- 20-1-2012 - SHRI I.P BANSAL AND SHRI SHAMIM YAHYA, JJ. Asseessee by : Shri. C.S. Aggarwal and Shri Inderjeet Ahuja, Advocates Department by : S hri Salil Mishra, Sr. D.R. ORDER PER SHAMIM YAHYA: AM This appeal by the Revenue is directed against the order of the Ld. Commissioner of Income Tax (Appeals) dated 23.8.2011 pertaining to assessment year 2008-09. 2. The grounds raised read as under:- (i) The Ld. Commissioner of Income Tax (Appeals) has erred in deleting the addition of the machinery maintenance expenses made by the Assessing Officer being capital expenses since the assessee s machinery maintenance expenses have be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ery maintenance expense made by the Assessing Officer being capital expenses despite the explanation to section 31 that amount paid on account of current repairs shall not include any expenditure in nature of capital expenditure. (v) The appellant craves leave to add, alter or amend any / all the grounds of appeal before or during the course of hearing of the appeal. 3. In this case the assessee is engaged in the business of stone crushing having factory at Ballabgarh, Faridabad. On the perusal of the P L account, the Assessing Officer noted that the assessee has debited an amount of Rs. 44,76,290/- on account of machinery maintenance. Whereas the value of machinery was recorded at Rs. 4,76,569/-. In order to verify the nature of the ex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cable in situation of incurring current repairs in the nature of capital expenditure and treated the claim of the assessee as capital expenditure, which is a non-allowable deduction. In view of the nature of expenses incurred by the assessee and relying on the explanation to section 31 of the IT Act and various decisions stated, Assessing Officer allowed an amount of Rs. 3,81,273/- which pertained to purchase of jaw-plates, generator running, electrical repairing etc. out of Rs. 44,76,290/- and added the balance amounting to Rs. 40,95,017/- to the total income of the assessee. 4. Being aggrieved, the assessee appealed before the Ld. Commissioner of Income Tax (Appeals) and submitted elaborate submissions. 5. Ld. Commissioner of Income T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rther, Ld. Commissioner of Income Tax (Appeals) observed that a perusal of the maintenance expenditure pertaining to the earlier years shows that full benefit was consumed in that period only because such expenditure was incurred in the subsequent year also and claimed by the assessee year after year. Ld. Commissioner of Income Tax (Appeals) analysed the nature of the activity of the assessee. He observed from the same, it is seen that the jaw crusher uses steel jaw plates for crushing the stones. He observed that Assessing Officer allowed the expenditure incurred on these jaw plates is revenue expenditure. If such expenditure was allowed by the Assessing Officer, the same should have been in the case of the other items detailed in the list ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on. We find that Ld. Commissioner of Income Tax (Appeals) has given a finding that the said expenditure is a revenue and not a capital in nature. Such expenditure has been incurred by the assessee in the past also and also allowed. The examples in this regard are as under:- Asstt. Year Amount of expenses (in Rs.) Sales 2006-07 24,86,057.00 2,90,99,633.00 2007-08 42,41,219.00 3,98,51,062.00 2008-09 44,76,290.00 4,06,23,623.00 7.1 It was further found that incurring of the expenditure did not result any increase in the earning of the assessee. The item were purely on repair and maintenance in nature and were like brackets, bearing, belts, chain, loader, electrical motor rewinding, face plates, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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