COMMISSIONER OF INCOME-TAX Vs. GITANJALI MILLS LTD

JUDGEMENT

(1.) THE questions referred to us at the instance or the Revenue, for our consideration are : '1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in holding that the expenditure incurred by the assessee during the accounting year on replacement of machinery at Rs. 63,80,131 was amount paid on current repairs and was allowable under Section 31 of the Act ?

(2.) WHETHER , on the facts and in the circumstances of the case, the Appellate Tribunal is correct in law in deducting the expenditure incurred on purchase of ring frames while computing the book profits under Section 115J ?' 2. The assessment year is 1990 -91.

(3.) THE Tribunal has not held that several replacement is by way of current repairs. It has proceeded to rest its conclusion on the finding that the '. . . expenditure incurred on the replacement of ring frames was revenue in nature'. In other words that the expenditure was not in the nature of capital expenditure.