COMMISSIONER OF INCOME TAX Vs. MADURA COATS

JUDGEMENT

(1.) As the issue involved in these tax case appeals are one and the same, the following common order is passed. These tax case appeals are directed against the common order passed by the Income Tax Appellate Tribunal, dt. 28-2-2007, made in I.T.A. Nos. 105(Mds)/2002, 1140 (Mds)/1998 and 1437 (Mds)/2004 for the assessment years 1995-1996, 1994-1995 and 1996-1997 respectively.

(2.) The assessee is a Public Limited Company engaged in the manufacture of clothes, industrial fabrics, readymade garments, sewing threads etc. They have filed income tax returns for the assessment years 1994-95, 1995-96 and 1996-97.

(3.) The assessing officer, for the assessment years 1994-95 and 1995-96, inter alia disallowed the claim of the assessee in respect of replacement expenditure of Auto Coners etc. by holding that replacement of old by new machinery cannot be treated as revenue expenditure. The Assessing Officer also disallowed the claim of the assessee with respect to repairs to rented premises, for the assessment years 1994-95, 1995-96 and 1996-1997, by holding that the said expenditure represents capital expenditure, as the assets created were for use for a longer period.