Ita/31/2009 Of Commissioner Of Income Tax Dehradun And Another v. Barin Ghosh, C.j. (Oral

IN THE HIGH COURT OF UTTARAKHAND AT NAINITALIncome Tax Appeal No. 31 OF 2009 Commissioner of Income Tax, Dehradun and another. ………Appellants Versus M/s Shivalik Rasayan Ltd., Kolhupani, P.O. Chandanwari, Dehradun. …….Respondent. Mr. H.M. Bhatia, Advocate for the appellants. Coram: Hon'ble Barin Ghosh, C.J.Hon'ble Servesh Kumar Gupta, J. Barin Ghosh, C.J. (Oral) In the Return submitted by the respondent assessee, he contended that a sum of `18,71,781/- was spent by him on account of repair and maintenance and, accordingly, he was entitled to treat the same as revenue expenditure. The Assessing Officer found that the assessee replaced machinery and held that those will be capital expenditure and not revenue expenditure. That finding has reached finality. The question was, whether, for having had claimed deduction on that amount on account of revenue expenditure and not on account of capital expenditure, assessee could be prosecuted for penalty. While the Assessing Officer proceeded against the respondent assessee for imposing penalty and has imposed penalty, the Tribunal has set aside the same, principally, on the ground that there was no suppression, at any stage, by the assessee. Aggrieved by the order of the Tribunal, the revenue is before us in this Appeal. 2. We have not been persuaded to take a different view than that expressed by the Tribunal. The Appeal fails and the same is dismissed. 3. Copy of the original assessment order produced in Court is kept with the record. (Servesh Kumar Gupta, J.) (Barin Ghosh, C.J.) 26.12.2013