2001 (8) TMI 23 - HC - Income Tax

Summary

The High Court of Madras dismissed the appeal regarding the expenditure incurred to replace old machinery parts in a textile mill. The value of the parts replaced being Rs. 12,07,292 does not automatically make it a capital expenditure. The replacement was deemed essential for maintaining production, as confirmed by the appellate authority. The Tribunal's order was upheld with no error of law found.