Court upholds deduction for replacing worn-out ring frames under "Current repairs"

The High Court of Madras dismissed the Revenue's petition seeking a reference from the Tribunal's order. The Tribunal's decision to allow the deduction of amounts spent on replacing worn-out ring frames under "Current repairs" was upheld, citing a previous court ruling that such expenditure is not capital in nature. The Revenue's argument that the replacement cost should be treated as capital expenditure was rejected.

---

---

The High Court of Madras dismissed the Revenue's petition seeking a reference from the Tribunal's order. The Tribunal's decision to allow the deduction of amounts spent on replacing worn out ring frames under "Current repairs" was upheld, citing a previous court ruling that such expenditure is not capital in nature. The Revenue's argument that the replacement cost should be treated as capital expenditure was rejected.

---