Capital expenditure on plant acquisitions qualifies for depreciation under Income-tax Act: HC Bombay ruling

The HC of Bombay held that capital expenditure on plant acquisitions by the assessee qualifies for depreciation under the Income-tax Act, following the SC precedent in Scientific Engineering House Pvt. Ltd. v. CIT [1986] 157 ITR 86. The court ruled in favor of the assessee.

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The High Court of Bombay ruled that the capital expenditure incurred by the assessee-company on plant acquisitions qualifies for depreciation under the Income-tax Act. The decision is based on the precedent set by the Supreme Court in the case of Scientific Engineering House Pvt. Ltd. v. CIT [1986] 157 ITR 86. The court ruled in favor of the assessee.

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