Expenses on Replacement of Jigs & Fixtures Allowable as revenue

ACIT Vs Bajaj Holdings & Investment Ltd (ITAT Mumbai) The issue under consideration is whether the replacement of jigs and fixtures considered as revenue expense or capital expense? ITAT states that, the expenditure incurred on replacement of jigs and fixtures are basically tooling aids required in the production process and these items are part of the machinery in automobile industry. ITAT find that these jigs and fixtures need to be constantly replaced due to constant wear and tear and also due to changes in the design of the part. It is not in dispute that the expenditure incurred on ji...