COMMISSIONER OF INCOME TAX Vs. ASHER TEXTILES LIMITED

JUDGEMENT

(1.) FOR the assessment year 1973-74, the following question has been referred for our decision at the instance of the Revenue :

(2.) OUR answer to this question is in the affirmative, against the Revenue and in favour of the assessee. A similar question arose before this court in the cases of CIT v. Binny Ltd. [1995] 215 ITR 536 and CIT v. Jawahar Mills Ltd. (No. 2) [1997] 226 ITR 230. The first of these two cases arose out of the fact situation which showed that the roof of the spinning department of a mill which required replacement was replaced, such replacement being necessary for the proper utilisation of the structure as a whole. This court held that carrying out such repair did not result in a new asset being created or enduring benefit derived from the work done. In the latter case, a false ceiling was installed. The expenditure incurred thereon was held to be expenditure of a revenue nature, as no new asset had been created and no enduring benefit derived from that work.