Replacement/ substitution of HF Reactor is capital expenditure eligible only for depreciation

Tanfac Industries Ltd. Vs ACIT (ITAT Chennai)

ITAT Chennai held that replacement/ substitution of HF Reactor is capital expenditure and eligible for depreciation only. Such replacement couldn’t be considered as ‘current repairs’.

Facts-

The assessee is engaged in manufacturing of fluorine-based chemicals. The assessee incurred expenditure on repairs and renovation of worn-out reactors and claimed the same to be revenue expenditure.

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