Expenditure on addition or augmentation of profit making apparatus the nature of the expenditure would be capital

If the expenditure was incurred for operation and work of existing profit making apparatus, it would be revenue in nature, but in case expenditure was on addition or augmentation of profit making apparatus the nature of the expenditure would be capital. The Tribunal noted that the approach road was linked to only the new plant which was still under construction and therefore, the expenditure could not be related to operation or working of existing profit earning apparatus which consisted of other units which were operational and to which the approach road was not linked. The approach road wasÂ...