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2011 (10) TMI 44 - HC - Income TaxPurchase of moulds - capital expenditure or revenue expenditure - Held that:- In the instant case having regard to the nature of the business of the assessee and applying the principle of law enunciated in Mysore Spun Concrete Pipe Pvt. Ltd.’s case (1991 -TMI - 22014 - KARNATAKA High Court), the Tribunal has reached a conclusion that the moulds in question do not enhance the capacity of the existing machines and are merely replacements for the moulds damaged during the process of manufacture of glass. It is also evident from the format of the question proposed by the Revenue, that finding of the Tribunal to the effect that the expenditure in question was incurred by the assessee on the ‘replacement’ of the moulds is not under challenge. - Decided in favor of assessee.
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