In Brief
A textile manufacturing company claimed income tax deduction for expenditure on replacement of machinery as "current repairs." The Supreme Court held that replacement of entire independent machines in different departments/divisions of a mill, which perform separate functions, does not qualify as "current repairs" under section 31(i) of the Income Tax Act, 1961. The Court distinguished such full machine replacement from mere repair of machine parts. Current repairs must relate to maintenance of existing machinery, not substitution of independent machines. The appeal was allowed and deduction was denied.
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