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TMI Blog1991 (4) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... essment years 1980-81 and 1981-82, respectively, being the expenditure incurred on replacement of damaged moulds as revenue expenditure ? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal is right in law in allowing the expenditure of Rs. 32,533 incurred on replacement of runners and end rings as revenue expenditure for the assessment year 1981-82 ?" The references are argued mainly with reference to the moulds with an understanding that the second question has to be answered in the affirmative and against the Revenue. The facts are simple ; the assessee requires moulds to complete its manufacturing process in its factory ; these undergo damage frequently to such an extent that they have to be repla ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... court has cautioned against applying the test of enduring benefit to hold it as a capital expenditure, by observing : "The decided cases have, from time to time, evolved various tests for distinguishing between capital and revenue expenditure but no test is paramount or conclusive. There is no all embracing formula which can provide a ready solution to the problem ; no touchstone has been devised. Every case has to be decided on its own facts, keeping in mind the broad picture of the whole operation in respect of which the expenditure has been incurred. But a few tests formulated by the courts may be referred to as they might help to arrive at a correct decision of the controversy between the parties. One celebrated test is that laid down ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of this test. If the advantage consists merely in facilitating the assessee's trading operations or enabling the management and conduct of the assessee's business to be carried on more efficiently or more profitably while leaving the fixed capital untouched, the expenditure would be on revenue account, even though the advantage may endure for an indefinite future. The test of enduring benefit is, therefore, not a certain or conclusive test and it cannot be applied blindly and mechanically without regard to the particular facts and circumstances of a given case." It is a matter of common knowledge that moulds do not last long. The assessee's business requires moulds which, by constant use, need replacement ; the replacement of moulds is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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