https://www.taxtmi.com/caselaws?id=204642 The Delhi HC ruled in favor of the assessee regarding expenditure of Rs. 10,56,69,367 on tools and dies claimed as revenue expenditure. The Commissioner questioned whether dies costing over Rs. 2 crores with lifespan of at least one year should be treated as capital expenditure. The assessee successfully argued that tools and dies for automobile manufacturing have short lifespans, producing maximum one lakh units before requiring replacement to maintain accuracy. The HC accepted that frequent replacement was imperative for high-speed, precision manufacturing, confirming the expenditure as revenue rather than capital. en-us Fri, 11 Sep 2009 00:00:00 +0530 Thu, 12 Jun 2025 11:07:59 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=204642 The Delhi HC ruled in favor of the assessee regarding expenditure of Rs. 10,56,69,367 on tools and dies claimed as revenue expenditure. The Commissioner questioned whether dies costing over Rs. 2 crores with lifespan of at least one year should be treated as capital expenditure. The assessee successfully argued that tools and dies for automobile manufacturing have short lifespans, producing maximum one lakh units before requiring replacement to maintain accuracy. The HC accepted that frequent replacement was imperative for high-speed, precision manufacturing, confirming the expenditure as revenue rather than capital. Case-Laws Income Tax Fri, 11 Sep 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=204642