CIT v. Ramco Cements Ltd. [2025] 481 ITR 705 / 173 taxmann.com 226 (Mad)(HC)

S 37(1):Business expenditure-Capital or revenue-Depreciation-Interest-Replacement of old machinery, pollution-free, is revenue expenditure-Fly Ash handling system 100 per cent depreciation allowed-Interest provision-Not allowable as paid. [S. 32, 43B]

Held, expenditure on machinery replacement that is pollution-free and reduces power consumption without increasing capacity is revenue expenditure. 100 per cent depreciation allowed on the Fly Ash handling system as it achieves waste containment. Disallowance under S. 43B for interest provision confirmed in the absence of proof of actual payment. (AY. 1996-97)

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