https://www.taxtmi.com/caselaws?id=769514 The ITAT Bangalore ruled that expenditure incurred by the assessee for replacing hydraulic system with electrical control panel of a second-hand imported machine constituted capital expenditure, not revenue expenditure. The tribunal noted that two-thirds of the machine parts were replaced and the assessee was aware that the old machinery would require system replacement to maintain working condition. Since the expenditure provided enduring benefit and was necessary to put the machine in working condition, it qualified as capital expenditure eligible for depreciation. The appeal was decided against the assessee. en-us Wed, 02 Apr 2025 00:00:00 +0530 Sat, 26 Apr 2025 08:30:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=769514 The ITAT Bangalore ruled that expenditure incurred by the assessee for replacing hydraulic system with electrical control panel of a second-hand imported machine constituted capital expenditure, not revenue expenditure. The tribunal noted that two-thirds of the machine parts were replaced and the assessee was aware that the old machinery would require system replacement to maintain working condition. Since the expenditure provided enduring benefit and was necessary to put the machine in working condition, it qualified as capital expenditure eligible for depreciation. The appeal was decided against the assessee. Case-Laws Income Tax Wed, 02 Apr 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=769514