Expense on improving the quality of existing products are revenue expenditure

CIT Vs Arvind Products Ltd. (Gujarat High Court) Assessee who was engaged in manufacturing textile products, had expended the amount in question for product development undertaken by a sister concern of the assessee on its behalf. The research work did not involve development of a new product or even a new technique or technology to manufacture existing product more efficiently. He is aimed at improving the quality of the existing products of the assessee. Essentially thus, the expenditure was for the assessee’s existing business and was for the purpose of improving the quality of the existi...