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TMI Blog2020 (1) TMI 507X X X X Extracts X X X X X X X X Extracts X X X X ..... 1994- 95. 2.The Tribunal by its impugned order allowed the cost of replacement of machineries like Motor Rollers, Spindles, Gears etc. in the Textile Mill of the Assessee with the following observations: "9.I.T.A.Nos.1334 & 1335/Mds/99: These two appeals are filed by the Revenue against the order of the CIT (Appeals) and relate to the assessment years 1993-94 and 1994-95. The solitary issue raised in these appeals relates to the question as to whether cost of replacement of machinery could be claimed as revenue expenditure. The replaced machineries are an assemble of Motor Rollers, Spindles, gears etc. The Assessing Officer observed that the machineries under consideration are indigenous products made in India and are nothing but moder ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of CIT v. Baroda Industrial Development Corpn. Ltd. [1992] 198 ITR 716/65 Taxman 359 (Guj.) and in the case of CIT v. Satyadev Chemical Ltd. [1997] 226 ITR 95 (Guj.) has been impliedly overruled by this Court in the case of CIT v. Sraavana Spg. Mills (P.) Ltd. [2007] 293 ITR 201/63 Taxman 201 (SC). She submitted that each items for which deduction under the head "current repairs" was sought is a machine by itself and therefore deduction under Section 31(i) cannot be allowed. She invited out attention to paragraphs 9, 10, 12, 13 and 14 of hte judgment in the case of Saravana Spg. Mills (P.) Ltd. (supra) and submitted that if the current repairs related to independent machines itself instead of repairs of a part of that machine, deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mount-Rs. Lorry Freight Erection Charges Total Value Rs. Date of Commencement 1 Texmaco Ltd., Calcutta 2 Nos Texmaco Howa CM 80 Model Card Nos.1322 & 1327 TMC/MS/3 24/92-93 dt. 30.07.92 26,20,696 37,325 19,860 26,77,881 14.09.92 2 Texmaco Ltd., Calcutta 1 No Texmaco Howa Card CM 80 Card No.1326 TMC/MS/4 13/92-93 dt. 30.08.92 13,451,136 24,850 12,675 13,82,661 28.09.92 3 Texmaco Ltd., Calcutta 1 No Texmaco Howa Card CM 80 Card No.1336 TMC/MS/ 680/92-93 dt. 17.12.92 13,56,732 23,050 18,825 13,98,607 22.01.93 Total : 54,59,149 7.The total replacement cost of three machineries in question purchased by the Assessee amounting to Rs. 54,59,149/- came to be allowed by the Tribunal as &# ..... X X X X Extracts X X X X X X X X Extracts X X X X
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