1963 (4) TMI 63 - SUPREME COURT

Whether the expenditure of Rs. 3,19,766 incurred by the assessee in dismantling and shifting the factory from Sitalpur and erecting the factory and fitting the machinery at Garaul was expenditure of a capital nature and not revenue expenditure within the meaning of section 10(2)(xv) of the Income-tax Act ?

Whether the assessee was entitled to claim depreciation on the said expenditure of Rs. 3,19,766 ?

Held that:- Appeal dismissed. The expenses for shifting and re-erection were incurred on capital account & the appellant cannot claim depreciation on the amount spent for acquiring an advantage. The questions referred was clearly correctly answered by the High Court in negative.