COMMISSIONER OF INCOME TAX Vs. SAKTHI TEXTILES LTD

JUDGEMENT

(1.) THE assessment year is 1986 -87.

(2.) THE questions referred to us for our consideration are : By the Revenue :

(3.) REGARDING the speed frames, this court has, in the case of CIT v. Shri Rani Lakshmi Ginning Spinning and Weaving Mills Ltd. : [2002]256ITR592(Mad) , held that expenditure on replacement of worn out speed frames does not fall within the capital field, but is an expenditure which has to be allowed as revenue expenditure. The finding of the Tribunal, which upheld the view of the Commissioner that such expenditure has to be treated as revenue expenditure, therefore, is in accordance with the law laid down by this court.