COMMISSIONER OF INCOME TAX Vs. PRIME TEXTILES LTD

JUDGEMENT

(1.) THE revenue has preferred these appeals before us against the order of the Income Tax Appellate Tribunal, Madras 'D' bench dated 20.05.2005 made in ITA Nos. 2014(Mds)/2000, 1461 and 1582(Mds)/1999.

(2.) THE facts are : THE assessee filed its return for the assessment years 1994-95 to 1996-97 claiming the cost of replacements of certain machinery as revenue expenditure. THE assessing officer disallowed the claim of the assessee and treated the expenditure as capital in nature, which was confirmed by the Commissioner of Income Tax (Appeals). THE assessee went on further appeal before the Tribunal. THE Tribunal relying on the decision of this Court in the case of CIT v. Janakiram Mills Ltd., (2005) 275 ITR 403, allowed the appeals of the assessee. Hence, the revenue is before us in these appeals.