https://www.taxtmi.com/caselaws?id=20097 Expenditure on modernisation, rehabilitation, replacement of worn-out machinery parts, and conversion of existing machinery was treated as revenue expenditure because it improved the efficiency of an ongoing business without creating a new asset or fresh profit-earning apparatus. Laying a new electricity line was also held to be revenue expenditure, since it merely facilitated existing manufacturing operations and did not enlarge the assessee's capital structure; an enduring advantage was not conclusive. Electricity surcharge liability accrued under the mercantile system in the year the statutory charge arose, even though payment or dispute continued later, so it was deductible in the relevant year. en-us Fri, 29 Oct 1993 00:00:00 +0530 Mon, 25 Apr 2016 15:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=20097 Expenditure on modernisation, rehabilitation, replacement of worn-out machinery parts, and conversion of existing machinery was treated as revenue expenditure because it improved the efficiency of an ongoing business without creating a new asset or fresh profit-earning apparatus. Laying a new electricity line was also held to be revenue expenditure, since it merely facilitated existing manufacturing operations and did not enlarge the assessee's capital structure; an enduring advantage was not conclusive. Electricity surcharge liability accrued under the mercantile system in the year the statutory charge arose, even though payment or dispute continued later, so it was deductible in the relevant year. Case-Laws Income Tax Fri, 29 Oct 1993 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=20097