https://www.taxtmi.com/caselaws?id=4729 The court upheld the Income-tax Appellate Tribunal's decision to allow the deduction of amounts spent on the replacement of machinery as revenue expenditure for the assessment years 1997-98, 1995-96, and 1996-97. It clarified that the replacement of machinery should be considered revenue expenditure based on the provisions of the Income-tax Act, emphasizing that all plant and machinery together form a complete unit capable of manufacturing a product. The court also ruled that excise duty and sales tax collections should be excluded from turnover for calculating deductions under section 80HHC. Consequently, the appeals were dismissed as no substantial questions of law were found. en-us Mon, 16 Apr 2007 00:00:00 +0530 Sat, 26 Jul 2008 11:24:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=4729 The court upheld the Income-tax Appellate Tribunal's decision to allow the deduction of amounts spent on the replacement of machinery as revenue expenditure for the assessment years 1997-98, 1995-96, and 1996-97. It clarified that the replacement of machinery should be considered revenue expenditure based on the provisions of the Income-tax Act, emphasizing that all plant and machinery together form a complete unit capable of manufacturing a product. The court also ruled that excise duty and sales tax collections should be excluded from turnover for calculating deductions under section 80HHC. Consequently, the appeals were dismissed as no substantial questions of law were found. Case-Laws Income Tax Mon, 16 Apr 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=4729