https://www.taxtmi.com/caselaws?id=11832 Expenditure on installation of an overhead cleaner and humidification plant was treated as revenue expenditure because it reduced workplace dust, protected workers, and only replaced an existing system performing the same function with better efficiency. Replacement of worn-out speed frames was also revenue expenditure, as it merely preserved the existing business apparatus without bringing a new capital asset into existence. By contrast, expenditure on the blow room machinery was capital expenditure because it involved acquisition of a new item of machinery not previously existing in the factory, and was therefore not allowable as revenue expenditure. en-us Tue, 25 Mar 2003 00:00:00 +0530 Tue, 09 Feb 2010 18:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=11832 Expenditure on installation of an overhead cleaner and humidification plant was treated as revenue expenditure because it reduced workplace dust, protected workers, and only replaced an existing system performing the same function with better efficiency. Replacement of worn-out speed frames was also revenue expenditure, as it merely preserved the existing business apparatus without bringing a new capital asset into existence. By contrast, expenditure on the blow room machinery was capital expenditure because it involved acquisition of a new item of machinery not previously existing in the factory, and was therefore not allowable as revenue expenditure. Case-Laws Income Tax Tue, 25 Mar 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=11832