Machinery part replacement expense not resulting in production capacity increase is revenue expense

Jaya Hind Industries Limited Vs DCIT (ITAT Pune) which is used in the robotic arms forming part of high pressure die casting machines can be allowed as revenue expenditure. The factual submissions made on behalf of the appellant are that the expenditure was incurred on replacement of Gripper which is part of robotic arms forming part of high pressure die casting machines. There is no increase of productivity or capacity on account of incurring this expenditure. It is also submitted that this part namely Gripper cannot be machine itself i.e. it cannot perform any function independently. These f...