High Court rules machinery parts replacement expenditure as revenue nature, citing CIT v. Sri Hari Mills Pvt. Ltd.

The High Court of Madras dismissed the tax case petitions following the precedent set in CIT v. Sri Hari Mills Pvt. Ltd. [1999] 237 ITR 188, ruling that expenditure on replacing worn-out machinery parts is of a revenue nature essential for business continuity.

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The High Court of Madras dismissed the tax case petitions based on the decision in CIT v. Sri Hari Mills Pvt. Ltd. [1999] 237 ITR 188, which stated that expenditure on replacement of worn out parts of machinery is of revenue character to maintain business operations.

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