1 itxa5765-10+1 sas IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.5765 OF 2010 WITH INCOME TAX APPEAL NO.4733 OF 2010 The Commissioner of Income Tax-1, Mumbai ..Appellant. V/s. KalyanI Forge Ltd. ..Respondent. Mr. Vimal Gupta for the appellant. Mr. S.N. Inamdar, senior Advocate with Mihir Nalawade for the respondent. CORAM : J.P. DEVADHAR AND K.K. TATED, JJ. DATED : 5TH SEPTEMBER, 2011 P.C. :- 1. Whether the ITAT was justified in holding that the expenditure on Dies incurred by the assessee was allowable as revenue expenditure, is the question raised in these appeals. 2. The grievance of the revenue is that in all the earlier assessment years, the expenditure on Dies were considered as capital expenditure and the same has been accepted by the assessee. However, in the assessment year in question for the first time, the assessee contended that the said expenditure must be allowed as revenue expenditure. The Tribunal in para 5 of its judgment has 2 itxa5765-10+1 recorded the finding as follows :- " We find that, in the present case, the assessee has given evidence of the fact that the actual useful life of the dies is less than 12 months, and no defects have been filed in the certificate to that effect issued by the assessee's auditor. The nature of assessee's work, i.e. manufactures various types of small forgings, is such that dies, which are made as per customer specifications, are required to be made which have limited life. As to what is the actual life of dies is essentially a question of fact and merely because the assessee has amortized the same for a period of three years in past, it cannot be said that the life of the dies is less than one year even at present. We have also taken note of the details filed by the assessee in the paper book which shows that 90% of the dies are worn out, even after carrying out 'resinking' to add to the life of the dies, within one year. In these circumstances, claim of the assessee cannot be simply brushed aside, as was done by the authorities below. As long as the change in account method is bonafide and is followed regularly in the succeeding years, change of method of account cannot be declined. " 3. In our opinion, the decision of the ITAT is based on finding of fact, no question of law arises from the order of the Tribunal. The fact that in the past the expenditure on dies were considered as capital expenditure cannot be a ground to disallow the same as business expenditure in the assessment year in question, especially when the fresh materials brought on record establish to the contrary. In the result, both the appeals are dismissed with no order as to costs. (K.K. TATED, J.) (J.P. DEVADHAR, J.)