THE DY. COMMISSIONER OF INCOME-TAX, JALANDHAR vs. THE HIND SAMACHAR LTD.,, JALANDHAR

ITA 392/ASR/2011Status: DisposedITAT Amritsar31 August 2026AY 2003-0419 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the replacement of burnt wires was a revenue expenditure as it was necessary to bring an existing asset back to its original working condition and did not create a new asset or increase its capacity or value.

What were the facts?

The assessee claimed expenditure on replacement of burnt electrical wires as revenue expenditure. The Assessing Officer (AO) treated it as capital expenditure, and the CIT(A) upheld this. The assessee argued that it was a repair and replacement necessary to restore the existing asset to its working condition.

What were the issues?

Whether the expenditure incurred on replacement of burnt electrical wiring is a capital or revenue expenditure.

Which sections of the Income-tax Act were involved?

Section 250

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR.

Before: SH. S. RIFAUR RAHMAN & SH. UDAYAN DAS GUPTA

For Appellant: CA for Delhi Group and Sh. Sudhir Sehgal, Advocate
Hearing: 21.07.2026Pronounced: 31.08.2026

Page 2

Per: Udayan Dasgupta, JM: These two appeals filed by the assessee are against the order of the CIT(A), Jallandhar, dated 31.03.2011 passed u/s 250 of the income tax Act ’61 ( henceforth the Act 61 ) ( which has disposed of two appeals 350 and 382 / 06-07 / CIT (A)/Jal), which has emanated from the consolidated order of the AO ( DCIT- Range - III , Jalandhar ) dated 03rd November, 2006. 2. Grounds of appeal taken in ITA No. 352/Asr/20

The order continues below.

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