What is CIT v. Ramaraji Surgical Cotton Mills authority for?

Expenditure incurred on the replacement of a part of machinery is deductible as revenue expenditure if it does not result in an increase in productivity or capacity.

How many judgments cite CIT v. Ramaraji Surgical Cotton Mills?

24 judgments on BharatTax cite CIT v. Ramaraji Surgical Cotton Mills (294 ITR 328), spanning 2016 to 2025.

Which sections of the Income Tax Act does CIT v. Ramaraji Surgical Cotton Mills come up under?

It is most often cited in judgments turning on Section 143(3), Section 30, Section 31, Section 35, Section 35A, Section 35E.

CIT v. Ramaraji Surgical Cotton Mills (294 ITR 328)

THE KERALA MINERALS AND METALS LIMITED,KOLLAM vs. THE ASSISTANT COMMISSIONER OF INCOME TAX, CIRCLE 1, KOLLAM

In the result, the appeal filed by the assessee stands partly allowed

ITA 918/COCH/2024[2007-08]Status: DisposedITAT Cochin16 May 2025AY 2007-08

Bench: Shri George George K., Vp & Shri Inturi Rama Rao, Am Assessment Year: 2007-08 The Kerala Minerals & Metals Ltd. .......... Appellant Sankaramangalam, Chavara, Kollam 691583 [Pan: Aaact8118R] Vs. Asst. Commissioner Of Income Tax .......... Respondent Circle - 1, Kollam Appellant By: Shri Rajeev R., Ca Respondent By: Smt. Leena Lal, Sr. D.R. Date Of Hearing: 13.05.2025 Date Of Pronouncement: 16.05.2025

For Appellant: Shri Rajeev R., CAFor Respondent: Smt. Leena Lal, Sr. D.R

Section 143(3)

…td. vs. JCIT, 120 taxmann.com 142 held that the expenditure incurred towards replacement of a part of the machinery can be allowed as a deduction. Even the Hon’ble Supreme Court in the subsequent decision in the case of CIT Vs. Ramaraju Surgical Cotton Mills, 294 ITR 328 had laid down the proposition that the expenditure incurred on replacement of a part of machinery can be allowed as a revenue deduction in case there is no increase of productivity or capacity as result of this expenditure. Keeping the above legal principles in mind, we examine the facts of the present case, as noticed by us supra that there is n…

NAGREEKA EXPORTS LIMITED vs. ASST. COMMISSIONER OF INCOME TAX, CIRCLE-6, KOLKATA & ORS.

The Appeal is dismissed

ITA/373/2009HC Calcutta27 Feb 2024

Bench: : The Hon’Ble Justice Surya Prakash Kesarwani & The Hon’Ble Justice Rajarshi Bharadwaj Date : 27Th February 2024. Appearance: Mr. Ranjeet Kr. Murarka, Advocate Mr. S.D. Verma, Advocate Mr. Ananda Sen, Advocate Mr. Vivek Murarka, Advocate … For The Appellant. Mr. S. Roychowdhury, Advocate Mr. Soumen Bhattacharjee, Advocate … For The Respondents 1. Heard Sri Ranjeet Murarka, Learned Counsel For The Appellant Assessee & Sri S. Roychowdhury, Learned Senior Standing Counsel For The Respondents. 2. This Appeal Was Admitted By This Court By Order Dated 04.02.2010, On The Following Substantial Questions Of Law:- “I. Whether On The Facts & Circumstances Of The Case The Order Of The Tribunal Is Erroneous As Being Perverse In Reversing The Order Of

Section 37Section 37(1)

…man 294 (SC) [paragraph 6], Hon'ble Supreme Court directed the High Court to consider the tests laid down in Commissioner of Income Tax v. Sugavaneeshwara Spinning Mills Ltd. 293 ITR 20 (SC), Commissioner of Income Tax v. Ramaraju Surgical Cotton Mills [2007] 294 ITR 328 (SC) and Sri Mangayarkarasi Mills (P) Limited case (supra) for de novo consideration of the case of the assessee of that case. He, therefore, submits that the question as to whether the expenditure incurred for replacement of nine ring frames is a revenue expenditure or capital expenditure, needs reconsideration. 7. Learned Counsel for the reven…

M/S. TANFAC INDUSTREIS LTD.,,CHENNAI vs. ACIT, CORPORATE CIRCLE - 3 (1),, CHENNAI

In the result, the appeal stands dismissed

ITA 719/CHNY/2020[2003-04]Status: DisposedITAT Chennai04 Jan 2023AY 2003-04

Bench: Hon’Ble Shri Mahavir Singh & Hon’Ble Shri Manoj Kumar Aggarwal, Am

For Appellant: Shri R.Vijayaraghavan, (Advocate)- Ld. ARFor Respondent: Shri D.Hema Bhupal (JCIT)-Ld. DR

Section 143(3)

…enditure. 4.5 The Ld. CIT(A) noted the ratio of decision of Hon’ble Apex Court in CIT vs Saravana Spinning Mills (P) Ltd. (293 ITR 201); CIT vs. Sri Mangayakarasi Mills Pvt. Ltd. (315 ITR 114) as well as the decision in CIT vs. Ramaraju Surgical Cotton Mills (294 ITR 328). After considering the submissions of the assessee, Ld. CIT(A) drew certain conclusions and adjudicated the issue as under: - From the reading of the above judgements, it is clear that the Hon'ble Apex Court has held the following principles: i. Entire plant cannot be treated as single machinery. ii. Each machine in a plant has to be treated ind…

DY. COMMISSIONER OF INCOME TAX , CIRCLE-2(2), HYDERABAD vs. GLOBAL ALUMINIUM PRIVATE LIMITED , HYDERABAD

Appeals are dismissed

ITA 678/HYD/2019[2016-17]Status: DisposedITAT Hyderabad16 Jul 2021AY 2016-17

Bench: Shri S.S. Godara & Shri L.P. Sahu

For Appellant: Sri Y. Ratnakar, A.RFor Respondent: Smt. N. Esther, D.R

Section 143(3)Section 234B

…such replacement of parts would be current repairs of capital in nature, this Court considered the decisions in the case of CIT Vs. Saravana Spinning Mills P; Ltd., reported in (2007) 293 ITR 201 (SC), CIT Vs. Ramaraju Surgical Cotton Mills reported in (2007) 294 ITR 328 (SC) and CIT Vs. Mangayarkarasi Mills P.Ltd., reported in (2009) 315 ITR 114 (SC) and pointed M/s Global Aluminium Pvt. Ltd. out that the question as to whether the expenditure incurred on replacement of machinery is revenue or capital rests on the nature of capital incurred vis-a-vis the benefit derived. This Court referred to the decision in th…

INCOME TAX OFFICER, WARD-2(2), HYDERABAD vs. GLOBAL ALUMINIUM PRIVATE LIMITED , HYDERABAD

Appeals are dismissed

ITA 483/HYD/2019[2014-15]Status: DisposedITAT Hyderabad16 Jul 2021AY 2014-15

Bench: Shri S.S. Godara & Shri L.P. Sahu

For Appellant: Sri Y. Ratnakar, A.RFor Respondent: Smt. N. Esther, D.R

Section 143(3)Section 234B

…such replacement of parts would be current repairs of capital in nature, this Court considered the decisions in the case of CIT Vs. Saravana Spinning Mills P; Ltd., reported in (2007) 293 ITR 201 (SC), CIT Vs. Ramaraju Surgical Cotton Mills reported in (2007) 294 ITR 328 (SC) and CIT Vs. Mangayarkarasi Mills P.Ltd., reported in (2009) 315 ITR 114 (SC) and pointed M/s Global Aluminium Pvt. Ltd. out that the question as to whether the expenditure incurred on replacement of machinery is revenue or capital rests on the nature of capital incurred vis-a-vis the benefit derived. This Court referred to the decision in th…

DCIT, CIRCLE-2(2), HYDERABAD, HYDERABAD vs. GLOBAL ALUMINIUM PVT. LTD., SECUNDERABAD, SECUNDERABAD

Appeals are dismissed

ITA 968/HYD/2017[2012-13]Status: DisposedITAT Hyderabad16 Jul 2021AY 2012-13

Bench: Shri S.S. Godara & Shri L.P. Sahu

For Appellant: Sri Y. Ratnakar, A.RFor Respondent: Smt. N. Esther, D.R

Section 143(3)Section 234B

…such replacement of parts would be current repairs of capital in nature, this Court considered the decisions in the case of CIT Vs. Saravana Spinning Mills P; Ltd., reported in (2007) 293 ITR 201 (SC), CIT Vs. Ramaraju Surgical Cotton Mills reported in (2007) 294 ITR 328 (SC) and CIT Vs. Mangayarkarasi Mills P.Ltd., reported in (2009) 315 ITR 114 (SC) and pointed M/s Global Aluminium Pvt. Ltd. out that the question as to whether the expenditure incurred on replacement of machinery is revenue or capital rests on the nature of capital incurred vis-a-vis the benefit derived. This Court referred to the decision in th…

DY. COMMISSIONER OF INCOME TAX, CIRCLE-2(2), HYDERABAD vs. GLOBAL ALUMINIUM PRIVATE LIMITED, SECUNDERABAD

Appeals are dismissed

ITA 1374/HYD/2017[2013-14]Status: DisposedITAT Hyderabad16 Jul 2021AY 2013-14

Bench: Shri S.S. Godara & Shri L.P. Sahu

For Appellant: Sri Y. Ratnakar, A.RFor Respondent: Smt. N. Esther, D.R

Section 143(3)Section 234B

…such replacement of parts would be current repairs of capital in nature, this Court considered the decisions in the case of CIT Vs. Saravana Spinning Mills P; Ltd., reported in (2007) 293 ITR 201 (SC), CIT Vs. Ramaraju Surgical Cotton Mills reported in (2007) 294 ITR 328 (SC) and CIT Vs. Mangayarkarasi Mills P.Ltd., reported in (2009) 315 ITR 114 (SC) and pointed M/s Global Aluminium Pvt. Ltd. out that the question as to whether the expenditure incurred on replacement of machinery is revenue or capital rests on the nature of capital incurred vis-a-vis the benefit derived. This Court referred to the decision in th…

JAYA HIND INDUSTRIES LIMITED,,PUNE vs. DEPUTY COMMISSIONER OF INCOME-TAX, CIRCLE - 9,, PUNE

In the result, the appeal filed by the assessee stands allowed

ITA 2149/PUN/2017[2010-11]Status: DisposedITAT Pune04 Jan 2021AY 2010-11

For Appellant: Shri Mukesh PatelFor Respondent: Shri Sudhendu Das

Section 143(2)Section 143(3)Section 31

…td. vs. JCIT, 120 taxmann.com 142 held that the expenditure incurred towards replacement of a part of the machinery can be allowed as a deduction. Even the Hon’ble Supreme Court in the subsequent decision in the case of CIT Vs. Ramaraju Surgical Cotton Mills, 294 ITR 328 had laid down the proposition that the expenditure incurred on replacement of a part of machinery can be allowed as a revenue deduction in case there is no increase of productivity or capacity as result of this expenditure. Keeping the above legal principles in mind, we examine the facts of the present case, as noticed by us supra that there is n…

DCIT LTU, MUMBAI vs. BAJAJ HOLDING & INVESTMENTS LTD, MUMBAI

In the result, all the appeals filed by the revenue are dismissed

ITA 6963/MUM/2014[1993-94]Status: DisposedITAT Mumbai28 Aug 2020AY 1993-94

Bench: Shri M.Balaganesh, Am & Shri Ram Lal Negi, Jm

Section 143(3)Section 254

…such replacement of parts would be current repairs of capital in nature, this Court considered the decisions in the case of CIT Vs. Saravana Spinning Mills P; Ltd., reported in (2007) 293 ITR 201 (SC), CIT Vs. Ramaraju Surgical Cotton Mills reported in (2007) 294 ITR 328 (SC) and CIT Vs. Mangayarkarasi Mills P.Ltd., reported in (2009) 315 ITR 114 (SC) and pointed out that the question as to whether the expenditure incurred on replacement of machinery is revenue or capital rests on the nature of capital incurred vis-a-vis the benefit derived. This M/s.Bajaj Holdings & Investment Ltd., (Formerly known as Bajaj Auto…

RAMCO INDUSTRIES LTD.,CHENNAI vs. ACIT, VIRUDHUNAGAR

In the result, all the appeals filed by the assessee are dismissed and the appeal filed by the Revenue also dismissed

ITA 93/CHNY/2017[2002-2003]Status: DisposedITAT Chennai26 Dec 2019AY 2002-2003

Bench: Shri Ramit Kochar & Shri Duvvuru Rl Reddyआयकर अपील सं./I.T.A. No. 201/Chny/2017 िनधा"रण वष"/Assessment Year: 2005-06 The Deputy Commissioner Of M/S. Ramco Industries Limited, Income Tax, Vs. No. 47, P S K. Nagar, Corporate Circle 2, Rajapalayam 626 108. Madurai. [Pan:Aaacr5284J] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपील सं./I.T.A. Nos. 92, 93 & 94/Chny/2017 िनधा"रण वष"/Assessment Years: 2001-02, 2002-03 & 2005-06 M/S. Ramco Industries Limited, Vs. The Assistant Commissioner Of No. 47, P S K. Nagar, Income Tax, Circle 1, Rajapalayam 626 108. Virudhunagar. (अपीलाथ"/Appellant) (""थ"/Respondent) Department By : Shri Srinivasa Rao Vana, Addl. Cit Assessee By : Shri J. Prabhakar, C.A. सुनवाई की तारीख/ Date Of Hearing : 21.11.2019 घोषणा की तारीख /Date Of Pronouncement : 26.12.2019 आदेश /O R D E R Per Duvvuru Rl Reddy: Three Appeals Filed By The Assessee Are Directed Against Separate Orders Of The Ld. Commissioner Of Income Tax (Appeals) 1, Madurai, All Dated 03.10.2016 Relevant To The Assessment Years 2001-02, 2002-03 & 2005-06. The Revenue Also Filed An Appeal Against The Order Of The Ld. Cit(A) For The 2

For Appellant: Shri J. Prabhakar, C.AFor Respondent: Shri Srinivasa Rao Vana, Addl. CIT

Section 143(3)Section 37

…he matter to the file of the Assessing Officer with a direction to decide it afresh in accordance with law after providing adequate opportunity to the assessee of being heard.” 6. On perusal of the decision in the case of CIT v. Ramaraju Surgical Cotton Mills 294 ITR 328 (SC), we find that without expressing any opinion on the merits, the Hon’ble Supreme Court remanded the matters to the Commissioner (Appeals) with a direction to decide them uninfluenced by the decision of the Madras High Court, which was relied on by the assessee(s). Accordingly, since in the first round, the Tribunal remitted the matter to the…

RAMCO INDUSTRIES LTD.,CHENNAI vs. ACIT, VIRUDHUNAGAR

In the result, all the appeals filed by the assessee are dismissed and the appeal filed by the Revenue also dismissed

ITA 92/CHNY/2017[2001-2002]Status: DisposedITAT Chennai26 Dec 2019AY 2001-2002

Bench: Shri Ramit Kochar & Shri Duvvuru Rl Reddyआयकर अपील सं./I.T.A. No. 201/Chny/2017 िनधा"रण वष"/Assessment Year: 2005-06 The Deputy Commissioner Of M/S. Ramco Industries Limited, Income Tax, Vs. No. 47, P S K. Nagar, Corporate Circle 2, Rajapalayam 626 108. Madurai. [Pan:Aaacr5284J] (अपीलाथ"/Appellant) (""थ"/Respondent) आयकर अपील सं./I.T.A. Nos. 92, 93 & 94/Chny/2017 िनधा"रण वष"/Assessment Years: 2001-02, 2002-03 & 2005-06 M/S. Ramco Industries Limited, Vs. The Assistant Commissioner Of No. 47, P S K. Nagar, Income Tax, Circle 1, Rajapalayam 626 108. Virudhunagar. (अपीलाथ"/Appellant) (""थ"/Respondent) Department By : Shri Srinivasa Rao Vana, Addl. Cit Assessee By : Shri J. Prabhakar, C.A. सुनवाई की तारीख/ Date Of Hearing : 21.11.2019 घोषणा की तारीख /Date Of Pronouncement : 26.12.2019 आदेश /O R D E R Per Duvvuru Rl Reddy: Three Appeals Filed By The Assessee Are Directed Against Separate Orders Of The Ld. Commissioner Of Income Tax (Appeals) 1, Madurai, All Dated 03.10.2016 Relevant To The Assessment Years 2001-02, 2002-03 & 2005-06. The Revenue Also Filed An Appeal Against The Order Of The Ld. Cit(A) For The 2

For Appellant: Shri J. Prabhakar, C.AFor Respondent: Shri Srinivasa Rao Vana, Addl. CIT

Section 143(3)Section 37

…he matter to the file of the Assessing Officer with a direction to decide it afresh in accordance with law after providing adequate opportunity to the assessee of being heard.” 6. On perusal of the decision in the case of CIT v. Ramaraju Surgical Cotton Mills 294 ITR 328 (SC), we find that without expressing any opinion on the merits, the Hon’ble Supreme Court remanded the matters to the Commissioner (Appeals) with a direction to decide them uninfluenced by the decision of the Madras High Court, which was relied on by the assessee(s). Accordingly, since in the first round, the Tribunal remitted the matter to the…

K.P.R.SPINNING MILLS (P) LTD.,CHENNAI vs. ITO, COIMBATORE

In the result, the appeal of the assessee stands allowed

ITA 1873/CHNY/2016[2005-06]Status: DisposedITAT Chennai14 Feb 2017AY 2005-06

Bench: Shri N.R.S. Ganesan & Shri Abraham P. Georgeआयकर अपील सं./Ita No. 1873/Mds/2016 िनधा"रण वष" / Assessment Year : 2005 - 06 M/S. K.P.R. Spinning Mills (P) Ltd., The Income Tax Officer, (Now Known As M/S. K.P.R. Mill V. Company Ward – 1, Limited), Coimbatore. 9, A.K.S. Nagar, Thadagam Road, Coimbatore. Pan : Aabck5208N (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri S. Sridhar, Advocate ""यथ" क" ओर से/Respondent By : Shri Shiva Srinivas, Jcit सुनवाई क" तारीख/Date Of Hearing : 19.01.2017 घोषणा क" तारीख/Date Of Pronouncement : 14.02.2017 आदेश /O R D E R

For Appellant: Shri S. Sridhar, AdvocateFor Respondent: Shri Shiva Srinivas, JCIT

Section 37

…s a commercial advantage for the assessee which is definitely in the capital field. Therefore, the Assessing Officer has rightly disallowed the claim of the assessee. Referring to the judgment of the Apex court in CIT v Ramaraju Surgical Cotton Mills (2007) 294 ITR 328, the Ld. D.R., submitted that there are two issues arose for consideration before the Apex court. First one is whether there was any increase in the production capacity after replacement of the machinery or the production capacity remains constant even after replacement. The second one whether the test applied to determine the allowability of cl…