Sree Karpagambal Mills Ltd., Rajapalayam v. ACIT, Virudhunagar

ITA 719/CHNY/2011 | 2007-2008
Pronouncement Date: 22-07-2011 | Result: Allowed

Appeal Details

RSA Number 71921714 RSA 2011
Assessee PAN AADCS9038A
Bench Chennai
Appeal Number ITA 719/CHNY/2011
Duration Of Justice 3 month(s) 2 day(s)
Appellant Sree Karpagambal Mills Ltd., Rajapalayam
Respondent ACIT, Virudhunagar
Appeal Type Income Tax Appeal
Pronouncement Date 22-07-2011
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted C
Tribunal Order Date 22-07-2011
Assessment Year 2007-2008
Appeal Filed On 19-04-2011
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL CHENNAI BENCH C : CHENNAI [BEFORE DR. O.K. NARAYANAN VICE-PRESIDENT AND SHRI HARI OM MARATHA JUDICIAL MEMBER] I.T.A NO. 719/MDS/2011 ASSESSMENT YEAR : 2007-08 SREE KARPAGAMBAL MILLS LTD CHOLAPURAM SOUTH RAJAPALAYAM VS THE ACIT CIRCLE I VIRUDHUNAGAR [PAN - AADCS9038A] (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI N.SRINIVASAN RESPONDENT BY : DR.I.VIJAYAKUMAR CIT/DR O R D E R PER HARI OM MARATHA JUDICIAL MEMBER: THIS APPEAL OF THE ASSESSEE FOR ASSESSMENT YE AR 2007-08 IS DIRECTED AGAINST THE ORDER OF THE LD. CIT(A) MADUR AI DATED 4.1.2011. 2. THE ONLY ISSUE IN THIS APPEAL IS AS TO WHETHER THE REPLACEMENT OF RING FRAMES FOR OLD MACHINERY IN THE FACTORY OF THE ASSESSEE- COMPANY WHICH IS ENGAGED IN THE MANUFACTURE OF YAR N AND CLOTH BE TREATED AS REVENUE EXPENDITURE U/S 37 OF THE ACT OR NOT. ITA 719/11 :- 2 -: 3. AS PER THE LD.AR THIS ISSUE NEEDS TO BE REMITTED BACK TO THE ASSESSING OFFICER IN VIEW OF THE DECISIONS OF HON'B LE SUPREME COURT RENDERED IN THE CASE OF CIT VS SARAVANA SPINNING MI LLS P. LTD 293 ITR 201 AND RAMARAJU SURGICAL COTTONS LTD 294 ITR 328 . THE HON'BLE SUPREME COURT HAS LAID DOWN CERTAIN GUIDELINES ACCO RDING TO WHICH THE ISSUE HAS TO BE DECIDED. WE HAVE BEEN REMITTING B ACK SUCH TYPE OF CASES TO THE FILE OF THE ASSESSING OFFICER WITH A D IRECTION THAT THE ASSESSING OFFICER HAS TO APPLY THE RATIO OF ABOVE M ENTIONED CASE IN THEIR LETTERS AND SPIRIT TO DECIDE THE ISSUE AFRESH . IT WOULD NOT BE OUT OF PLACE TO MENTION THAT THE LD. CIT/ DR DR.I.VIJA YAKUMAR ARGUED THAT SUBSEQUENTLY THE HON'BLE SUPREME COURT IN THE CASE OF CIT VS SRI MANGAYARKARASI MILLS P. LTD 315 ITR 114 AFTER TAK ING INTO BOTH THE ABOVE DECISIONS HAS SETTLED THE ISSUE BY STATING T HAT IF THE PRODUCTION CAPACITY OF THE MILL HAS INCREASED IT WOULD GIVE R ISE TO ACQUIRING OF CAPITAL ASSET BUT STILL THE FACTS HAVE TO BE EXAMI NED IN THE LIGHT OF THAT DECISION ALSO. CONSEQUENTLY WE REMIT THE ENTIR E ISSUE BACK TO THE FILE OF THE ASSESSING OFFICER WITH A DIRECTION THAT HE SHALL EXAMINE ALL THE ABOVE MENTIONED DECISIONS AND TAKE A DECISION AS PER THE FACTS OF THE CASE IN JUDICIAL SPIRIT. NEEDLESS TO MENTION T HAT THE ASSESSING OFFICER SHALL GIVE OPPORTUNITY OF BEING HEARD TO TH E ASSESSEE TO ARRIVE AT HIS FINAL CONCLUSION. ITA 719/11 :- 3 -: 4. IN THE RESULT THE APPEAL OF THE ASSESSEE STAND S ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 22.07.11. SD/- SD/- (DR. O.K. NARAYANAN) VICE-PRESIDENT (HARI OM MARATHA) JUDICIAL MEMBER DATED: 22 ND JULY 2011 RD COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT(A) 4. CIT 5. DR