2003 (3) TMI 35

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..... question referred is: "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in holding that the expenditure on purchase of drawn frame is "revenue expenditure?" The assessment year is 1987-88. The assessee is a closely held company engaged in the manufacture and sale of yarn and its by-products. During the assessment year in question, the assessee c .....

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..... frame has not also brought any substantial improvement on the installed capacity of the textile unit. The reasoning given by the authorities below so as to conclude that the cost of replacement of draw frame should only be treated as revenue expenditure, in our view, is correct, which warrants no interference in this reference. The reference is answered against the Revenue and in favour of the as .....

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