Import expenses on machinery which is vital to manufacturing is Capital Expenditure

Brief of the Case

Delhi High Court held In the case of CIT vs. Modi Rubber Ltd. that in present case, it is clear that the two Banbury mixers have been described by the Assessee itself as equipment used for mixing natural rubber, synthetic rubber, carbon black, chemicals and other raw materials and that it is the most important part for tyre manufacturing plant. It has described the Banbury F 370 equipment as a “major equipment and is used for mixing the rubber and chemical on regular

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