1999 (8) TMI 33

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....ct"), the Revenue seeks a direction to the Income-tax Appellate Tribunal to state the case and refer the following question, in respect of the assessment year 1982-83, for the opinion of this court : "On the facts and circumstances of the case and in law, whether the Tribunal has erred to hold that the expenditure incurred on replacement of moulds is a revenue expenditure ?" During the relev....

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....ry but was for replacing a part of the machinery, which does not have the effect of bringing into existence some new asset or increase in production capacity, accepted the claim of the assessee and allowed the said expenditure on replacement of moulds as revenue expenditure. The Revenue's application under section 256(1) of the Act for reference on the aforenoted question to this court having been....

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....l be a revenue expenditure. In the instant case having regard to the nature of the business of the assessee and applying the principle of law enunciated in Mysore Spun Concrete Pipe Pvt. Ltd.'s case [1992] 194 ITR 159 (Kar), the Tribunal has reached a conclusion that the moulds in question do not enhance the capacity of the existing machines and are mere replacements for the moulds damaged duri....