Capital Expenditure Incurred Only When Whole Machine is Replaced, Not for Parts

ACIT Vs Nitrex Chemicals India Ltd. (ITAT Delhi) If whole machine is replaced instead of a part then only the expenses would be treated as Capital Expenditure Conclusion: In present facts of the case, the Hon’ble Tribunal while deducting the additions made by Ld. AO for repair and maintenance, it was observed that if the replacement is of a baby part only, then the same cannot be considered to be a capital expenditure. It is only when a baby part alone cannot be repaired and the whole of machine is required to be replaced, the expenditure of replacement will be of capital nature. Facts: In p...