Cit vs Saravana Spinning Mills P. Ltd. on 18 January, 2007
It was ultimately concluded that employing the test indicated in
Saravana Spinning Mills (supra), the assessee had incurred the said
expenditure only to preserve and maintain the existing asset and that the
expenditure was not of a nature which brought into being a new asset or
created a new advantage of an enduring nature. Consequently, the Tribunal
deleted the disallowance.