https://www.taxtmi.com/caselaws?id=13523 The High Court of MADRAS upheld the Tribunal's decision to allow the deduction for replacement machinery as revenue expenditure for the assessment year 2001-02. The court emphasized that the treatment of replacement machinery should align with the provisions of the Income-tax Act, not accounting practices. It was ruled that the replacement expenditure was revenue in nature based on the precedent set in a previous case. The court also clarified that the block of assets concept was not applicable in this scenario as it aimed to streamline depreciation provisions for new assets, which was not the case here. The appeal was dismissed with no costs incurred. en-us Thu, 18 Jan 2007 00:00:00 +0530 Fri, 29 May 2009 13:00:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=13523 The High Court of MADRAS upheld the Tribunal's decision to allow the deduction for replacement machinery as revenue expenditure for the assessment year 2001-02. The court emphasized that the treatment of replacement machinery should align with the provisions of the Income-tax Act, not accounting practices. It was ruled that the replacement expenditure was revenue in nature based on the precedent set in a previous case. The court also clarified that the block of assets concept was not applicable in this scenario as it aimed to streamline depreciation provisions for new assets, which was not the case here. The appeal was dismissed with no costs incurred. Case-Laws Income Tax Thu, 18 Jan 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=13523