Cit Vs. Thanjavur Textiles Ltd.

counsels: t. ravikumar, for the revenue p. p. s. lanarthana raja for the assessee head note: income tax reference--capital or revenue expenditureexpenditure on replacement of worn out parts of machinery catch note: expenditure on replacement of worn out parts of machinery was expenditure of revenue character, as it was meant to keep the business without break down of machinery and not expenditure incurred for starting a new business tribunal was right in allowing the claim of assessee, i.e., deduction of expenditure towards replacement of certain items of machinery, no question of law arose. ratio: expenditure on replacement of worn out parts of machinery was expenditure of revenue character, as it was meant to keep the business without break down of machinery and not expenditure incurred for starting a new business tribunal was right in allowing the claim of deduction and no question of law arose. case law analysis: cit v. sri hari mills (p) ltd. (1999) 237 itr 188 (mad) followed. application: not to current assessment year. decision: in favour of assessee. income tax act 1961 s.256 in the madras high court r. jayasimha babu and k. gnanaprakasam, jj. - constitution of india article 141; [a.p. shah, c.j., f.m. ibrahim kaliffulla &v. ramasubramanian, jj] reference to larger bench - precedent - full bench decision held, it is binding on the division bench. only if the full bench comes to conclusion that earlier full bench decision is incorrect, there is scope for making reference to larger bench. division bench doubting correctness of full bench decision cannot direct registry for placing papers before chief justice to make reference to larger bench. r. jayasimha babu, j.in the light of the decision of this court in the case of cit v. sri hari mills (p) ltd. : [1999]237itr188(mad) , counsel fairly stated that the proposed question will have to be regarded as one which is covered by that decision.it has been held in that case that expenditure on replacement of worn out parts of machinery is expenditure of revenue character, as it was meant to keep the business without break down of machinery and not expenditure incurred for starting a new business.the tax case petitions are, therefore, dismissed.