M/s. Sri Saravana Spinning Mills Ltd., Dindigul V. ACIT, Madurai

ITA 153/CHNY/2010

• Counselvise Citation: [2011] 134 COUNSELVISE.COM (IT) 5227 (ITAT-CHENNAI)
• Duration Of Justice: 1 year(s) 2 month(s) 5 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-04-2011
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 21-04-2011
• Assessment Year: 2006-2007
• Appeal Filed On: 15-02-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: K E B RENGARAJAN JR
• Assessee Lawyers: SAROJ KUMAR
• Keywords: Revenue expenditure

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL BENCH A CHENNAI BEFORE SHRI ABRAHAM P. GEORGE, ACCOUNTANT MEMBER AN D SHRI GEORGE MATHAN, JUDICIAL MEMBER .. I.T.A. NO. 153/MDS/2010 ASSESSMENT YEAR : 2006-07 M/S. SRI SARAVANA SPINNING MILLS LTD., PITHALAIPATTI-624002, DINDIGUL TALUK. V. THE ASSISTANT COMMISSIONER OF INCOME-TAX, COMPANY CIRCLE-II, MADURAI. (PAN: AACCS0540G) (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI SAROJ KUMAR RESPONDENT BY : SHRI K.E.B. RENGARAJAN, JR. STANDING COUNSEL O R D E R PER GEORGE MATHAN, JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST TH E ORDER OF THE LEARNED CIT(A)-II, MADURAI IN ITA NO. 277/08-09 DATED 08-12 -2009 FOR THE ASSESSMENT YEAR 2006-07. 2. SHRI SAROJ KUMAR, ADVOCATE REPRESENTED ON BEHALF OF THE ASSESSEE AND SHRI K.E.B. RENGARAJAN, JR. STANDING COUNSEL REPRESE NTED ON BEHALF OF THE REVENUE. I.T.A. NO.153/MDS/2010 2 3. AT THE TIME OF HEARING IT WAS FAIRLY AGREED BY B OTH THE SIDES THAT IN THE ASSESSEES OWN CASE FOR THE ASSESSMENT YEAR 2002-03 ON IDENTICAL GROUNDS THE ISSUE IN THE APPEAL RELATING TO THE DISALLOWANCE OF THE CLAIM OF REPLACEMENT OF OLD MACHINERIES WITH NEW MACHINERIES WAS LIABLE TO BE A LLOWED AS A REVENUE EXPENDITURE OR NOT, HAD BEEN RESTORED TO THE FILE O F THE LEARNED CIT(A) TO RECONSIDER THE ISSUE IN LINE WITH THE DECISION OF T HE HON'BLE SUPREME COURT IN THE CASE OF CIT V. RAMARAJU SURGICAL COTTON MILLS REPOR TED IN 294 ITR 328. IN THE CIRCUMSTANCES, RESPECTFULLY FOLLOWING THE DECISION OF THE CO-ORDINATE BENCH OF THIS TRIBUNAL IN THE ASSESSEES OWN CASE FOR THE ASSESSM ENT YEAR 2002-03 IN ITA NO. 1984/MDS/06 DATED 28-04-2008, THE ISSUES IN THIS A PPEAL ARE RESTORED TO THE FILE OF THE LEARNED CIT(A) TO RE-DECIDE THE ISSUE IN THE LIGHT OF THE DECISION OF THE HON'BLE SUPREME COURT IN THE CASE OF RAMARAJU SURGI CAL COTTON MILLS, REFERRED TO SUPRA. IN THE CIRCUMSTANCES, THE APPEAL OF THE ASS ESSEE IS ALLOWED FOR STATISTICAL PURPOSES. 4. THE ORDER WAS PRONOUNCED IN THE COURT ON 21/04/2 011. SD/- SD/- (ABRAHAM P. GEORGE) (GEORGE MATHAN) ACCOUNTANT MEMBER JUDICIAL MEMBER CHENNAI, DATED THE 21 ST APRIL, 2011. H. COPY TO: ASSESSEE/AO/CIT (A)/CIT/D.R./GUARD FILE