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TMI Blog2018 (10) TMI 1695X X X X Extracts X X X X X X X X Extracts X X X X ..... of functioning independently - items of machinery to replace component and relying on various case laws examined the explanation of the assessee and on the basis of explanation furnished by the assessee, deleted the additions disallowance - Decided in favour of assessee - C. M. GARG, JUDICIAL MEMBER AND O. P. MEENA, ACCOUNTANT MEMBER For the Appellant : Shri Sanjay R. Shah, CA For the Respondent : Shri Vinod Kumar, Sr. D.R. ORDER PER O. P. MEENA, ACCOUNTANT MEMBER 1. These are two appeals at the instance of the Revenue are directed against an separate orders both dated 22.08.2016 passed by learned Commissioner of Income tax (Appeals)-3, Vadodara (in short the CIT (A) ) for the Assessment Year2004-05 and 2005-06 respectively. ITA No.2902/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... part of X-1301 of Turbine, expenditure of ₹ 21,53,101/- were in respect of Gear Shaft with Gear part, ₹ 35,24,800/- were in respect of Nozzle Ring which and expenditure of ₹ 35,02,523/- in respect of 415 V., 3 PHH , PMCC for CHIP was treated as capital expenditure on the grounds that these parts are giving enduring benefits to the assessee. 3. Being aggrieved, the assessee filed appeal before the ld. CIT(A) who after considering the submission of the assessee has observed that the assessee has filed Chartered Engineering certifying Turbine Rotor Assembly, Gear shaft with Gear Part , Nozzles Ring , 415 V., 3000A 3 PHH PMCC for CHP are the part of main machine not capable of functioning independently. The expenditure on repl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... counsel for the assessee submitted that the issue is squarely covered by the decision of ITAT, Surat Bench in ITA No.1363/Ahd/2013 for A.Y. 2009-10 vide para 13 to 17 [paper book, page 81-82] and order of tribunal of Surat bench in I.T.A.No. 1060/Ahd/2015 A.Y. 2003-04 dtd. 27.09.2018 (copy filed) in assessee`s own case. 6. We have heard the rival contentions and find that the issue is covered by the earlier orders of ITAT in ITA No.1363/Ahd/2013 dated 17.05.2018 for A.Y.2009-10 and earlier orders as mentioned in the order of Tribunal in para 13 to 17 which reads as under: 13. Brief facts of the case are that the assessee incurred expenses of consumption and replacement of stores and spares of ₹ 9,548.68 lakhs and claimed the same as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his issue in its setaside assessment order for A.Y. 1999-2000 passed u/s.143(3) read with section 250 of the Act dated 29.12.2009 (paper book, page 630 para 4.5 of the order). Since, the revenue has accepted this issue in the setaside assessment proceedings, therefore, we do not find any infirmity in the order of CIT(A). Accordingly, this ground of Revenue is dismissed. 7. We also find that the issue is covered against the Revenue by order of this bench. Since the issue is covered against the revenue by the above order of Tribunal as well as by the Tribunal Surat Bench in I.T.A.No. 1060/Ahd/2015 A.Y. 2003-04 dtd. 27.09.2018. Therefore, following the same we dismissed the appeal of Revenue on this ground. Further, reliance placed in the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 3(3) on 31.12.2007 by determining total income of ₹ 3,37,65,04,740/-. An appeal was filed before the CIT(A) who allowed part relief. Thereafter an appeal was filed before the Tribunal. The ITAT, Ahmedabad D Bench vide its order in ITA no.1464/Ahd/2007 dated 30.12.2011 has set-aside [Para 19, Page 13] the issue regarding disallowance of capital expenditure of ₹ 1,62,00,365/- to the file of the AO. In view of this, set-aside proceedings were taken up in pursuance of order of ITAT by the AO, and it was held that expenditure of ₹ 1,62,00,365/- has been incurred in respect of conversion for pump block , set of impellers , Naraxno was treated as capital expenditure on the grounds that these parts are giving enduring benefits to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd the rival contentions and find that the issue is covered by the earlier orders of ITAT in ITA No.1363/Ahd/2013 dated 17.05.2018 for A.Y.2009-10 and earlier orders as mentioned in the order of Tribunal in para 13 to 17 and Tribunal of Surat bench in I.T.A.No. 1060/Ahd/2015 A.Y. 2003-04 dtd. 27.09.2018 (copy filed) in assessee`s own case. Since facts of this year are also same as in A.Y. 2004-05 as discussed above for the assessment year 2004- 05 by us. Therefore, following the same we dismissed the appeal of Revenue on this ground. Further, reliance placed in the case of Sri Mangayarkasi Mills (P) Ltd (supra) is not applicable, as in that case replacement of old machinery with new machinery was treated as capital expenditure, whereas, in ..... X X X X Extracts X X X X X X X X Extracts X X X X
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