- (1.) This appeal by the Revenue was admitted vide order dated 4 -10 -2006 by framing the following substantial question of law: - i) Whether in the facts and circumstances, the Tribunal was justified in holding that the amount of Rs. 1,37,09,546 was allowable deduction as current repairs of plant and machinery under Sec. 31(1) or as revenue expenditures incurred wholly laid out for purpose of business under Sec. 37(1) of the Act of 1961 by considering the entire plant as one single unit? After hearing learned counsel for the parties, we are of the view that on the basis of the findings recorded by all the three authorities below, regarding the nature of the items purchased in respect of which 100 per cent deduction has been claimed, the controversy involved in the present case is squarely covered by the judgment of the Hon'ble Supreme Court in CIT v/s. Saravana Spinning Mills (P.) Ltd., [2007] 163 Taxman 201 in favour of the assessee.
(2.) In that view of the matter, following the said judgment of the Hon'ble Supreme Court the question is answered against the revenue, and in favour of the assessee, and the appeal is dismissed.;