Allowing the appeal of the revenue the Court held that the expenditure incurred by the assessee on replacement of old machinery by purchase and installation of new machinery was not allowable as revenue expenditure. (AY. 1994 -95, 1995 -96)
CIT v. Kongarar Spinners Ltd. (2019) 415 ITR 103 (Mad.)(HC)
S. 37(1) : Business expenditure-Capital or revenue-Manufacture of yarn-Replacement of old machinery by purchase and installation of new machinery-Not allowable as revenue expenditure.