Dismissing the appeal of the revenue the Court held that ,product development expenses which is incurred improving quality of existing products and not involve development of new product is held ato be allowable as revenue expenditure .( AY. 2001-02)
CIT v. Arvind Products Ltd ( 2018) 255 Taxman 472 ( Guj) (HC)
S.37(1): Business expenditure – Capital or revenue- Product development expenses -Expenditure incurred improving quality of existing products – Held to be allowable as revenue expenditure .