https://www.taxtmi.com/caselaws?id=789707 Expenditure on replacement of machinery is not automatically allowable as current repairs merely because it relates to the manufacturing process. The assessee must prove on acceptable material that the replacement falls within the permissible scope of repairs and does not create an independent capital asset. Applying the prevailing legal test after the earlier jurisdictional precedent was overruled, the HC held that the Tribunal could not rely on the reversed precedent and that the claim required fresh examination on proper materials. The Tribunal's order was set aside and the matter remitted to the appellate authority for reconsideration under the correct legal position. en-us Thu, 09 Apr 2026 00:00:00 +0530 Mon, 13 Apr 2026 07:52:34 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=789707 Expenditure on replacement of machinery is not automatically allowable as current repairs merely because it relates to the manufacturing process. The assessee must prove on acceptable material that the replacement falls within the permissible scope of repairs and does not create an independent capital asset. Applying the prevailing legal test after the earlier jurisdictional precedent was overruled, the HC held that the Tribunal could not rely on the reversed precedent and that the claim required fresh examination on proper materials. The Tribunal's order was set aside and the matter remitted to the appellate authority for reconsideration under the correct legal position. Case-Laws Income Tax Thu, 09 Apr 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=789707