1 IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR -------------------------------------------------------- INCOME TAX APPEAL No. 102 of 2006 C.I.T.AJMER V/S M/S BHILWARA SPINNERS LTD. Mr. KK BISSA, for the appellant / petitioner Mr. RAMIT MEHTA for Mr. LR MEHTA, for the respondent Date of Order : 24.9.2008 HON'BLE SHRI N P GUPTA,J. HON'BLE SHRI KISHAN SWAROOP CHAUDHARI,J. ORDER ----- This appeal by the Revenue was admitted vide order dt. 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 Section 31(1) or as revenue expenditures incurred wholly laid out for the purpose of business under Section 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 2 by all the three authorities below, regarding the nature of the items purchased in respect of which 100% deduction has been claimed, the controversy involved in the present case is squarely covered by the judgment of the Hon'ble Supreme Court in Commissioner of Income Tax, Madurai Vs. Saravana Spinning Mills (P.) Ltd. reported in (2007) 7 SCC-298 in favour of the assessee. 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. ( KISHAN SWAROOP CHAUDHARI ),J. ( N P GUPTA ),J. /Sushil/