PRINCIPAL COMMISSIONER OF INCOME TAX, VADODARA 3 Vs. GUJARAT NARMADA VALLEY FERTILIZER AND CHEMICALS LTD

JUDGEMENT

(1.) The Revenue has preferred this appeal under section 260A of the Income Tax Act, 1961 (hereinafter referred as the Act) challenging the order dated 17.5.2018 passed by the Income Tax Appellate Tribunal, Surat Bench, Surat (hereinafter referred as the Tribunal) in ITA No.1363Ahd2013SRT for assessment year 2009-10 raising the following questions of law, stated to be substantial questions of law-

(2.) With regard to question (a), brief facts are as under-

(3.) Learned advocate Mr. Varun K Patel for the revenue submitted that the Assessing Officer while making disallowance of the expenditure of the spare parts claimed as a revenue expenditure has observed that on the basis of the details furnished by the assessee, average life span is five years or more and in one item the life span is twenty years and, therefore, the expenditure is not allowable under section 37. Therefore, the Assessing Officer allowed the depreciation of 15% of such expenditure and disallowed the remaining expenditure of Rs. Rs.2,55,82,153- - and disallowed the addition on that score.