Expenses incurred for setting up of a new unit in expansion of an existing business are allowable as revenue expenses

Where the so called new unit set up by the assessee was merely an expansion of its existing business and was not setting up of a new business, the expenses incurred in that regard were allowable as revenue expenses. CASE LAWS DETAILS DECIDED BY: HIGH COURT OF GUJARAT, IN THE CASE OF: CIT Vs. Ghanashyam Steel Work Ltd., APPEAL NO: Tax Appeal Nos. 553 to 555 of 2009, DECIDED ON May 4, 2010 FACTS OF THE CASE The assessee is engaged in the business of manufacture of chemical processing equipment. During the years under consideration, the assessee started construction of a new unit in a separate pl...