Ita/152/2001 Of The Commr. Of Incometax, Trichur v. M/S.sri Bhagavathi Textiles Ltd

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT : THE HONOURABLE MR. JUSTICE C.N.RAMACHANDRAN NAIR & THE HONOURABLE MR. JUSTICE C.K.ABDUL REHIM MONDAY, THE 6TH JULY 2009 / 15TH ASHADHA 1931 ITA.No. 152 of 2001() --------------------- AGAINST THE ORDER IN ITA.224/1994 of I.T.A.TRIBUNAL,COCHIN BENCH .................... APPELLANT: ------------- THE COMMISSIONER OF INCOME TAX, TRICHUR. BY ADV. SRI.P.K.R.MENON, SENIOR ADVOCATE SRI.GEORGE K. GEORGE, SC FOR IT RESPONDENT(S): --------------- M/S.SRI. BHAGAVATHI TEXTILES LTD., CHITTOOR, PALAKKAD. ADV. SRI.SAJI VARGHESE FOR R1 SRI.JOE JOSEPH KOCHIKUNNEL FOR R1 THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 06/07/2009, ALONG WITH ITA NO. 18 OF 2002 THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: --------------------------------------------------- I.T.A. Nos. 152 of 2001 and 18 of 2002 ----------------------------------------------------- Dated this the 6[th] day of July, 2009 J U D G M E N T---------------------- Ramachandran Nair,J. Question raised in the appeals is whether the replacementof machineries entitles the assessee for deduction of its value asof revenue expenditure or they are entitled only depreciation onthe additional investment in plant and machinery ? On facts theTribunal found that the amount claimed is value of replacementsand so much so Tribunal allowed the claim as revenueexpenditure. If the departmental claim is allowed, then theentire assessments for the last several years will have to be re-opened for allowing depreciation in instalments. The director ofthe company has filed an affidavit today stating that the companyis being wound up and its accumulated loss is above Rs.35crores. We therefore do not think any purpose in thedepartment pursuing the appeals. We therefore dismiss theappeals without going into the questions raised as they have onlyacademic value. C.N.RAMACHANDRAN NAIR, JUDGE. C.K.ABDUL REHIM, JUDGE.