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TMI Blog2006 (10) TMI 492X X X X Extracts X X X X X X X X Extracts X X X X ..... 1999-2000. 2. The revenue is the appellant. The assessing officer disallowed the claim of replacement expenditure of Vibrator 0.5 HP Motor and cost of repairing driver cabins and oil tanker holding that replacement of old by new machinery cannot be treated as revenue expenditure. The assessing officer also disallowed the claim of the assessee towards purchase of software treating the same as ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the books of account or in the balance-sheet. The claim has to be determined only by the provisions of the Act and not by the accounting practice of the assessee. In the instant case, the Commissioner, and the Appellate Tribunal, finding that replacement of machinery is revenue expenditure, held that the claim of the assessee cannot be disallowed. 4. This court, in CIT v. Janakiram Mills Ltd. , ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of new computers, but claimed the expenditure for upgradation of existing computers. Further, the expenditure was incurred for improving the efficiency of the existing system with a view to keep pace with improvement of technology and no machinery was brought into existence. Such expenses incurred by the assessee for enhancement of efficiency, in our considered opinion, is nothing but an upgrada ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and the everlasting. 9. In the light of the above ratio laid down by the Supreme Court, we are of the view that upgradation of computers by changing certain parts thereby enhancing the configuration of the computers for improving their efficiency but without making any structural alterations is not of an enduring nature. The expenditure incurred by the assessee has therefore to be treated as r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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