Dismissing the appeal of the revenue the Court held that replacement of components of existing machinery to maintain efficiency and production capacity is held to be revenue expenditure . (AY. 2009 -10)
CIT v. Gujarat Narmada Valley Fertilizer and Chemicals Ltd. (2019) 416 ITR 144/266 Taxman 19 ( Mag)/ 311 CTR 556 / 184 DTR 84 (Guj)(HC)
S.37(1): Business expenditure – Capital or revenue – Replacement of components of existing machinery to maintain efficiency and production capacity- Held to be revenue expenditure .