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2012 (9) TMI 161 - HC - Income TaxDisallowance expenditure towards replacement of machinery - Revenue OR Capital - Held:- As decided in CIT v. Sri Mangayarkarasi Mills P. Ltd. [2009 (7) TMI 17 - SUPREME COURT] that the entire textile mill machinery for spinning yarn cannot be regarded as a single asset and each separate machinery was held to be an independent entity - Replacement of an old machine with a new one would constitute the bringing into existence of a new asset and not repair of the existing machine as asset gives the purchaser (assessee) an enduring benefit of better and more efficient production over a period of time. Such replacement of assets was held to be not amounting to "current repairs" and to be not allowed as revenue expenditure - in favour of revenue.
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