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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 ..... capital expenditure, moulds do not have enduring life, which will be a parameter for considering the same as capital expenditure - The short shelf life of the cast iron ingot moulds, which is to be purchased on regular basis as if it is a part of the stores of spares was treated by the Tribunal as revenue expenditure and not capital expenditure - no subatanital question of law arises for consideration – Decided against Revenue. - T.C. (A) NOS. 978 TO 981 OF 2013 AND M.P. NOS.1 OF 2014 - - - Dated:- 14-7-2014 - R. Sudhakar And G. M. Akbar Ali,JJ. For the Petitioner : Mr. J. Narayanasamy JUDGMENT (Delivered By R. Sudhakar, J.) In all these appeals, the following common question of law has been raised :- Whether on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd 2010-2011. The Commissioner (Appeals), placing reliance on the decision of the Income Tax Appellate Tribunal 'D' Bench, Chennai, in the assessee's own case for the assessment year 2004-2005, allowed the appeals recording the finding of the Tribunal, which is set out hereunder for better clarity :- Regarding the merits of the issue, we find that ingot moulds used by the assessee in its manufacturing process does not have a long shell life. As the moulding process undertaken by the assessee is in a high temperature, the pouring of the molten iron in the moulds makes cracks and breaks in the moulds of and on by which the appellant is compelled to replace the moulds incessantly. It is true that the assessee had treated the pu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, the addition is not warranted, and hence deleted. 6. In the result, the appeals for A.Y. 2005-06, 2008-09, 2009-10 2010-11 are ALLOWED. 4. Aggrieved against the said order, the Revenue has filed appeals before the Tribunal in respect of the four assessment orders mentioned above and the Tribunal, relying upon its earlier decision, set out above, held as follows :- 6. We have heard the submissions made by the representative of both the sides and have also perused the orders of the authorities below as well as the orders of the Tribunal relied upon by the ld. AR of the assessee. A perusal of the order of the Tribunal in ITA No.1437/MDS/2009 for the A.Y. 2004-05 decided on 20-01-2011 shows that the issue in hand has alread ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court is as to whether in the nature of manufacturing process carried out by the assessee, where the shell life of the cast iron ingot moulds, which is used for about 30 to 40 times and, thereafter, scrapped, could be taken as capital asset or a revenue asset. 7. Considering the nature of manufacturing process, the user of goods, the period of its shell life and the nature of its use, which is having short shelf life, the appellate authority as well as the Tribunal have held that the goods in question, viz., cast iron ingot moulds are to be treated as revenue expenditure and not as capital expenditure, holding clearly that moulds do not have enduring life, which will be a parameter for considering the same as capital expenditure. The sho ..... X X X X Extracts X X X X X X X X Extracts X X X X
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