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TMI Blog2007 (1) TMI 118X X X X Extracts X X X X X X X X Extracts X X X X ..... treated the same as capital expenditure. Aggrieved, the assessee went on appeal and the Commissioner of Income-tax (Appeals) held in favour of the assessee. The Revenue took up the issue before the Appellate Tribunal and the Tribunal held the issue in favour of the assessee. Hence, this appeal by the Revenue raising the following questions of law: "1. Whether, on the facts and circumstances of the case, the Tribunal was right in allowing a deduction of the amounts spent on replacement of machinery as revenue expenditure? 2. Whether, on the facts and circumstances of the case, replacement of independent complete machinery can be treated as revenue expenditure? 3. Whether, on the facts and circumstances of the case, the Tribunal was ri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of "block of assets" in detail. It is apposite to refer to the following: "Regarding the argument relating to 'block of assets', it is the claim of learned counsel for the assessees that the said principle or object of introduction of the above concept is totally not applicable relating to the nature of expenditure incurred by the respondent. These provisions were introduced from April 2, 1987, as defined under section 2(11) of the Income-tax Act, 1961 and they are in operation on different field. It is stated that they were intended to replace the provisions on depreciation of capital assets. The block of assets concept was introduced with a view to streamline the excess depreciation allowed and to allow terminal depreciation. When the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he authorities below shows that no claim for depreciation was ever made before any authorities either by the assessee or by the Revenue to consider the question of block of assets nor was there any necessity to do so. Moreover, the Department did not raise any objection before the Tribunal regarding the claim of allowance on the premise of the block of assets concept. Therefore, applying the law laid down by the decision cited supra, such question does not arise out of the order of the Appellate Tribunal for considering the same by this court under section 260A of the Act. The above view was also taken by this court in CIT v. Loyal Textile Mills Ltd. [2006] 284 ITR 658. In view of the ratio laid down by this court in the decisions cited ..... X X X X Extracts X X X X X X X X Extracts X X X X
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