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TMI Blog2014 (7) TMI 693X X X X Extracts X X X X X X X X Extracts X X X X ..... e 2005-2006 (re-opened assessment), 2008-2009, 2009-2010 and 2010-2011. The respondent assessee is engaged in the business of manufacture of cast iron ingots using iron scrap and for the purpose of manufacture of ingots, they use cast iron moulds. These moulds are used for about 30 to 40 heats after which time it becomes brittle and develops cracks and not usable again. Therefore, the assessee has to scrap these moulds and purchase new moulds for the manufacture of cast iron ingots. The assessee initially claimed it as a depreciable asset. However, the assessee, thereafter, changed its stand and treated the mould purchase expenditure as revenue in nature and claimed deduction through profit and loss account. This was not accepted by the Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e nature and shell life of mould and found that they are almost in the nature of consumables as far as the industry of the assessee is concerned. On the basis of that factual finding, the assessee changed its method and treated the mould purchase expenditure as revenue in nature and claimed deduction through profit and loss account. When we examine the nature of the manufacturing process carried out by the assessee and the shell life of the mounds we find that asessee is justified in treating the concerned expenditure as revenue in nature for the reason that the moulds do not have enduring life. Assessee has to purchase the moulds on a regular basis as if it is a part of stores and spares. In such circumstances, claiming the expenditure as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue in nature for the reason that the moulds do not have enduring life." In view of the findings of the co-ordinating Bench of the Tribunal which have been subsequently followed in assessee's own case in ITA No.826/Mds/2011 for the A.Y. 2007-08, we hold that the expenditure incurred on purchase of cast iron ingot moulds is revenue in nature. Accordingly, we uphold the findings of the CIT (Appeals) and dismiss all the four appeals of the Revenue. 7. As regards Cross Objection of the assessee for the A.Y. 2005-06 is concerned, the only issue raised is regarding re-opening. Since the appeal for A.Y. 2005-06 has already been decided on merits the Cross Objection has become merely academic. The Cross Objection is accordingly dismissed. In ..... X X X X Extracts X X X X X X X X Extracts X X X X
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