2005 (4) TMI 39 - MADRAS HIGH COURT

"(1) Whether Tribunal is right in law in holding that the expenditure incurred by the assessee during the accounting year on the cost of carding system (Rs. 31,22,679) was amount paid on current repairs and allowable under section 31? (2) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in directing allowance of the entire amount of Rs. 31,22,679 as revenue expenditure?" - Held that the claim of the assessees that replacement of parts of a textile mill is revenue expenditure is justified and deserves to be upheld. We answer the questions against the Revenue and in favour of the assessees - Appeals filed by the Revenue are dismissed