https://www.taxtmi.com/caselaws?id=155048 Replacement of mechanical yarn clearers with electronic yarn clearers was assessed for capital vs revenue characterization. Since the replacement did not enhance production capacity and the yarn clearer functioned as a servicing system within the manufacturing process, it merely preserved the existing operational condition and constituted "current repairs"; the expenditure was allowable as revenue. Deduction under s. 80-IA was considered for profits attributable to captive consumption of power generated from the assessee's own power plant. As such self-generation resulted in measurable savings forming profit and gains from the eligible undertaking, deduction on the value of units of power captively consumed was upheld. en-us Fri, 20 Jan 2012 00:00:00 +0530 Sat, 10 Jan 2026 11:15:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=155048 Replacement of mechanical yarn clearers with electronic yarn clearers was assessed for capital vs revenue characterization. Since the replacement did not enhance production capacity and the yarn clearer functioned as a servicing system within the manufacturing process, it merely preserved the existing operational condition and constituted "current repairs"; the expenditure was allowable as revenue. Deduction under s. 80-IA was considered for profits attributable to captive consumption of power generated from the assessee's own power plant. As such self-generation resulted in measurable savings forming profit and gains from the eligible undertaking, deduction on the value of units of power captively consumed was upheld. Case-Laws Income Tax Fri, 20 Jan 2012 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=155048