CIT Vs. TS TECH SUN INDIA LTD

JUDGEMENT

(1.) THIS appeal by the Revenue is directed against the order of the Tribunal dated 28.10.2011 by which the Tribunal confirmed the order of the CIT(Appeals) deleting the disallowance of Rs.52,71,300/- made by the Assessing Officer on the ground that the repair and maintenance expenses claimed to the above extent were capital in nature.

(2.) THE assessee is a public limited company engaged in the manufacture, assembly and selling of automobile parts. In respect of the assessment year 2006-07 the assessee claimed repairs and maintenance expenditure to the extent of Rs.58.57 lakhs. The expenses were incurred on the repairs and maintenance of a building and they were incurred on three different dates as follows :

(3.) AGGRIEVED, the revenue filed an appeal before the Tribunal. The Tribunal after examining the facts in detail noted that no new asset or extra space was created by incurring the expenditure. It noted that the purpose of the roof is to protect the plant and machinery, the workers and the products from weather conditions and replacement of or the repairs to the roof or adding a glass sheet to ensure proper lighting will not in any way increase the capacity of the factory, even admitting that the asbestos roof was replaced by shield glass sheets. The Tribunal further found that the floor of the factory was redone due to constant damage for the past 10 years. The roof and the floor were integral parts of the factory and they were merely restored to their original condition and strengthened by incurring the expenditure. The Tribunal recorded a finding that no extra space or extra capacity was obtained by incurring the expenditure. In this view of the matter it affirmed the decision of the CIT(Appeals) and dismissed the appeal filed by the revenue.