Replacement of machinery parts is revenue expenditure

Ambica Alloys & Steel India Ltd. Vs DCIT (ITAT Ahmedabad)

ITAT Held that replacement of parts of an existing machinery in the course of their working will be a revenue expenditure.

Facts-

The assessee is engaged in manufacturing of steel products of MS Angel, MS Channel and MS Beam. During the course of assessment, the AO noticed that the assessee had debited expenses amounting to 50,97,107/- as expenses on account of purchase of Rol

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