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TMI Blog2009 (1) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... eleted and treated as revenue expenditure - issue involved is covered by the SC’s decision in the case of CIT v. Ramaraju Surgical Cotton Mills - matter to the CIT (Appeals) with a direction to consider the matter again afresh - 1028 of 2004 - - - Dated:- 19-1-2009 - K. RAVIRAJA PANDIAN AND P. P. S. JANARTHANA RAJA JJ. Arun Kurian Joseph for Mrs. Pushya Sitaraman for the appellant. JUDG ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 31 of the Income-tax Act ?" 2. The facts of the case are as follows: 3. The assessee is engaged in manufacture and sale of cotton yarn. For the assessment year 1995-96, a total income of Rs. 9,64,360 was admitted by the assessee whereas the Assessing Officer determined the total income of Rs. 17,22,410. In that process, a sum of Rs. 10,10,728 being the cost of machinery claime ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reported in [1994] 73 Taxman 631, wherein it was held that replacement of old one with a new carding machine was nothing but a capital expenditure, the Assessing Officer disallowed the claim of the assessee and allowed depreciation. Aggrieved by the same, the assessee filed an appeal before the Commissioner of Income-tax (Appeals) who allowed the same and held that the addition made by the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vantage of an enduring nature and would be capital in nature. Without expressing any opinion on the merits, E the Supreme Court remanded the matters to the Commissioner (Appeals) to decide them uninfluenced by the decision of the Madras High Court in CIT v. Janakiram Mills Ltd. [2005] 275 ITR 403 by setting aside the same. 5. Therefore, we remand the matter to the Commissioner of Income-ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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