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TMI Blog2013 (6) TMI 920X X X X Extracts X X X X X X X X Extracts X X X X ..... der of the Commissioner of Income-tax (Appeals), Patiala dated 09.01.2013 relating to assessment year 2009-10 against the order passed u/s 143(3) of the Income Tax Act 1961 (in short the Act ). 2. All the three appeals relating to the same assessee were heard together and are being disposed off by this consolidated order for the sake of convenience. 3. Common grounds of appeal have been raised by the assessee in both the appeals relating to assessment years 2008-09 and 2009-10 and the same read as under: 1. That the learned A.O. has erred both in law and facts in disallowing interest of Rs. 1598217/- under section 36 (1) (iii) of Income Tax Act 1961 on account of investment in purchase of shares worth Rs. 14529250/- of M/S DSG Pap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es, Printex etc. ignoring the fact that most of the items purchased by the appellant were ne w identifiable assets. 2. In the facts and circumstances of the case, Ld. CIT(A) has erred in holding the acquisition of new assets for replacement of existing assets as current repairs, though the Hon'ble Supreme Court in the cases of CIT Vs. Sri Mangayarkarshi Mills (P) Ltd. (315 ITR 114)(2009) CIT Vs. Saravana Spinning Mills (P) Ltd. (293 ITR 201)(2007) has held that replacement of machinery was capital expenditure and could not be treated as current repairs. 3. It is prayed that the order of Ld. CIT(A) be set aside and that of the AO restored. 4. The appellant craves leave to add or amend any grounds of appeal before the appeal is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Officer, in view of the order of the Tribunal in assessee s own case relating to assessment year 2007-08. 9. We find that similar issue of disallowance under section 36(1)(iii) of the Act arose before the Tribunal in assessee s own case relating to assessment year 2007-08. The Tribunal in ITA No.347/Chd/2011 vide order dated 26.3.2012 held as under: 4(ii). We have heard the rival submissions, facts of the case and the relevant records. Brief facts of the case are that the assessee invested in the purchase of shares of M/s DSG paper Pvt Ltd for an amount of Rs. 1,,45,29,250/-. The assessee had paid interest of Rs. 46,17,225/-, on the borrowed capital utilized for this purpose. The AO sent a show cause to the assessee asking him to exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dings of the ld. CIT(A) are upheld. Ground No. 6 of assessee s appeal is dismissed. Thus, the Ground No. 6 raised by the assessee in his appeal is discussed and adjudicated in ITA No. 347/Chd/2011. 10. The issue arising before us is identical to the issue before the Tribunal in assessee s own case relating to assessment year 2007-08 and following the parity of reasoning we uphold the disallowance of Rs.15,98,217/-. The ground No.1 raised by the assessee is thus dismissed. 11. The ground of appeal No.2 is against the disallowance of Rs.20,921/- under the proviso to section 36(1)(iii) of the Act relating to assessment year 2008-09. The assessee is aggrieved by the application of proviso to section 36(1)(iii) of the order in order to com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies. The Assessing Officer during the course of assessment proceedings tabulated certain items/services debited by the assessee under the head current repairs and after allowing depreciation of 15%, the net disallowance was worked out at Rs.18,40,838/-. Further the assessee had claimed computer expenditure of Rs.17,000/- on which depreciation @ 60% was allowed and sum of Rs.6800/- was added as income of the assessee. The list of the items numbering 34 are tabulated at pages 30 to 32 of the assessment order. The Assessing Officer was of the view that the said expenditure was not in the nature of repair and maintenance but was an addition to the capital asset. 14. The CIT (Appeals) allowed the claim of the assessee holding he same to be ..... X X X X Extracts X X X X X X X X Extracts X X X X
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