Replacement of parts of an existing machinery in the course of their working will be a revenue expenditure

CIT Vs Super Cassettes Industries Ltd. (Delhi High Court)- Brief- The brief facts of the case are that the assessee has debited a sum of Rs. 3,78,27,658/- under the head machinery repair and maintenance in Unit C-5. This unit was manufacturing plastic components, namely, shell,roller, lock, CD shell box etc. These components are primarily used for assembling of audio cassettes and packing of CDs. The assessee had installed more than 100 injection moulding machines at Unit C-5 which was established in 1988. The injection moulding machines were purchased and installed in phase manner. The last ...