Tribunal held that from the details of the bills it was seen that the bills for the expenses indicate the expenses to be for repairs, supply of consumables, and recalibration of machinery. It was not the Department’s case that any new asset had come into existence. The repairs were for preserving and maintaining an already existing asset. The expenses were of revenue nature and to be allowed. (AY. 2011-12)
Peartree Enterprises Pvt. Ltd. v. Dy.CIT (2020) 83 ITR 436 (Delhi) (Trib.)
S. 37(1) : Business expenditure-Capital or revenue-Expenses on repairs, supply of consumables, and recalibration of machinery-No new asset coming into existence-Allowable as revenue expenses.