https://www.taxtmi.com/caselaws?id=118357 Expenditure on catalysts and heat transfer medium, having limited life and requiring replacement, was recognised on the matching principle over the period of use rather than as a full current-year deduction. In mercantile accounting, expenses must be matched with the income to which they relate, and regularly maintained audited books are relevant evidence unless shown to be incorrect or unlawful. Because the assessee itself deferred the cost over the useful life of the items, deduction for the year was confined to the amount actually debited in the Profit and Loss Account. The items were treated as consumables and not capital assets, but the current-year claim was limited to the write-off recorded in the books. en-us Mon, 10 Apr 2006 00:00:00 +0530 Sat, 30 Jun 2012 11:10:29 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=118357 Expenditure on catalysts and heat transfer medium, having limited life and requiring replacement, was recognised on the matching principle over the period of use rather than as a full current-year deduction. In mercantile accounting, expenses must be matched with the income to which they relate, and regularly maintained audited books are relevant evidence unless shown to be incorrect or unlawful. Because the assessee itself deferred the cost over the useful life of the items, deduction for the year was confined to the amount actually debited in the Profit and Loss Account. The items were treated as consumables and not capital assets, but the current-year claim was limited to the write-off recorded in the books. Case-Laws Income Tax Mon, 10 Apr 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=118357