https://www.taxtmi.com/caselaws?id=18984 The High Court of Bombay ruled that the expenditure incurred for laying a new pipeline for water supply to factory premises was a revenue expenditure, not of a capital nature. The Court emphasized that the specific facts and circumstances of each case must be considered to determine the nature of the expenditure. As the expenditure was integral to the profit-making process and did not result in the acquisition of a permanent asset, it was classified as a revenue expenditure. The Tribunal's decision to allow the deduction to the assessee was upheld, and the outcome favored the assessee with no order as to costs. en-us Tue, 20 Dec 1994 00:00:00 +0530 Tue, 03 Nov 2009 12:09:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=18984 The High Court of Bombay ruled that the expenditure incurred for laying a new pipeline for water supply to factory premises was a revenue expenditure, not of a capital nature. The Court emphasized that the specific facts and circumstances of each case must be considered to determine the nature of the expenditure. As the expenditure was integral to the profit-making process and did not result in the acquisition of a permanent asset, it was classified as a revenue expenditure. The Tribunal's decision to allow the deduction to the assessee was upheld, and the outcome favored the assessee with no order as to costs. Case-Laws Income Tax Tue, 20 Dec 1994 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=18984