Dismissing the appeal of the Revenue the court held that expenditure incurred on repairs and maintenance to plant & machinery is rightly allowed as revenue expenditure. Contribution to Sardar Vallabhbhai Rastriya Ekta Trust for construction of a statue of Sardar Vallabhbhai Patel being enhance value of brand name which is incurred on account of commercial expediency rightly allowed as business expenditure. (AY. 2010-11, 2011-12)
PCIT v. Gujarat State Fertilizers & Chemicals Ltd. (2023) 295 Taxman 282 (Guj.)(HC)
S. 37(1) : Business expenditure-Capital or revenue-Replacements of parts of machinery-Allowable as revenue expenditure-Contribution to Sardar Vallabhbhai Rastriya Ekta Trust for construction of a statue of Sardar Vallabhbhai Patel-Enhance brand value-Allowable as deduction.