Dismissing the appeal of the Revenue the Court held expenditure incurred on capital stores and spares and the expenditure on account of replacement of spares of machinery as revenue expenditure. Court also held that Tribunal was justified in deleting the addition of net of depreciation being expenses incurred on software as revenue expenditure.(AY. 2005-06)
PCIT v. Gujarat Industries Power Co. Ltd. (2024) 471 ITR 525 (Guj) (HC)
S. 37(1) : Business expenditure-Capital or revenue-Expenditure on capital stores and spares-replacement of spares of machinery-Allowable as revenue expenditure-Expenses incurred on software for facilitating trading operation is revenue expenditure. [S. 32, 260A]
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