Expense on Consumable Tools having short working life with no independent function allowable as Revenue expense

Walvoil Fluid Power India Pvt. Ltd. Vs DCIT (ITAT Bangalore) On perusal of the list of the tools treated as capital in nature and we find that the value per item in the entire list is not significant. The ratio laid down by the Hon’ble SC in Sarvana Spinning Mills Pvt. Ltd., (Supra) is that these tools need to have independent functions and also they need to have a benefit of enduring nature. In the given case as submitted by the Ld AR these tools are spares used in the operations of the assessee to facilitate the manufacture of finished products that have short working life needing frequent...