Madras High Court Dismisses Revenue's Appeal in Textile Mill Machinery Replacement Case - Expenditure on Replacement of Old Machinery with Modern Equivalents Held Revenue Expenditure Under Section 37(1) of Income Tax Act, 1961. The court applied the enduring benefit test and functional utility test to determine that the new machinery did not create a new asset but merely replaced existing machinery.
9 Apr 2026The case involves appeals by the Commissioner of Income Tax against the order of the Income Tax Appellate Tribunal (ITAT) allowing the assessee, M/s. ...






