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TMI Blog2009 (4) TMI 51X X X X Extracts X X X X X X X X Extracts X X X X ..... to the concept of Block of asset – there are a number of tests which are required to be considered while deciding whether the expenditure was revenue or capital in nature. In the absence of the requisite details regarding the production capacity remaining constant even after replacement, the matter could not be decided on merits and require to be remitted back to the Commissioner (Appeals) - 115 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Supreme Court against the revenue in the case of Commissioner of Income Tax vs. Lakshmi Machine 2007 (290 ITR 667) wherein it has been held as follows : "Section 80HHC of the Income Tax Act, 1961, is a beneficial section : it was intended to provide incentive to promote exports. The intention was to exempt profits relatable to exports. Just as commission received by the assessee is rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... case, the Tribunal was right in allowing a deduction of the amounts spent n replacement of machinery as revenue expenditure? 2. Whether in the facts and circumstances of the case, replacement of independent complete machinery can be treated as revenue expenditure? 3. Whether in the facts and circumstances of the case, the Tribunal was right in deciding the issue without going into the concept ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nature. In the absence of the requisite details regarding the production capacity remaining constant even after replacement, the matter could not be decided on merits and require to be remitted back to the Commissioner (Appeals) for consideration of that particular issue with reference to the production capacity. In this case also, there is no material available as to the increase or otherwise of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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