9911796707
TMI Blog2025 (4) TMI 1428X X X X Extracts X X X X X X X X Extracts X X X X ..... er of the learned Assessing Officer in so far as it is against the appellant is opposed to law, equity and weight of evidence, probabilities, facts and circumstances of the case. 2. The appellant denies itself liable to be assessed to a total income of Rs. 78,97,340/- as against the total income returned by the appellant of Rs. 51,98,590/- for the impugned assessment year 2012-13 on the facts and circumstances of the case. 3. The Assessing Officer was not justified in disallowing the expenditure incurred on current repairs of machinery in the normal course of business, of Rs. 31,75,000/- by stating that the same had to be capitalised on the facts and circumstances of the case. 4. Without prejudice to the contention that the expenditur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... revenue. 3. The appellant in the set aside proceedings filed all the details before the AO and the AO upon appreciation of the same confirmed the disallowance of one item of machinery claimed as revenue expenditure treating it as capital expenditure and allowing depreciation on the same and deleted the other additions. The appellant has in its manufacturing facility several specialised heavy machinery sourced over the years by either importing or sourcing them locally. During the course of hearing before the ld. CIT(Appeals), the assessee relied on various judgments of Hon'ble Apex Court and jurisdictional High Court. The ld. ld.CIT(Appeals) after considering the entire facts, grounds and submissions of the assessee confirmed the order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... use of assessee and the ld. AR fairly accepted that 2/3rd parts have been replaced and there is no doubt that amount paid on account of current repairs was not included in the expenditure in the nature of capital expenditure. From the plain reading of the provision it is very much clear that if any amount is paid on account of repairs of any machinery or any other asset which is not capital in nature and is put to use for the purpose of business or profession, then such expenditure shall be allowed as revenue expenditure which is deductible from the income of the assessee. The appellant has incurred expenditure on account of replacement of one of the components namely Hydraulic system with electrical control panel of the main machine which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... maintenance expenses or replacement expenses. As a distinction has to be made if the replacement is of a baby part only, then the same cannot be considered to be a capital expenditure. It is only when a baby part alone cannot be repaired and the whole of machine is required to be replaced, the expenditure of replacement will be of capital nature. Thus, in regard to these grounds there is no substance in the contentions on behalf of the revenue or the assessee. The grounds are disallowed." 6. Considering the rival submissions, we note that here the dispute is only regarding the classification of expenditure incurred by the assessee of Rs. 31,74,000 is capital or revenue expenditure towards replacement of Hydraulic system with electrical con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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