Replacement of old machinery with new machinery for improvement in quality/quantity results in Modernisation and not diversification
Last updated: 12 January 2023
Court :
Supreme Court of India
Brief :
The Hon'ble Supreme Court in AMD Industries Limited v. Commissioner of Trade Tax, Lucknow and Anr. [Civil Appeal No. 108 of 2023dated January 9, 2023] upheld the order passed by the Hon'ble Allahabad High Court holding that due to advancement in technology, if there is a replacement of the old machinery with the new machinery for improvement in quality and quantity of a product, it results in expansion and/or modernization, but not in diversification, thus, the assessee will not be entitled to exemption on the payment of trade tax under the Uttar Pradesh Trade Tax Act, 1948 ("the Trade Tax Act").
Citation :
Civil Appeal No. 108 of 2023 dated January 9, 2023
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Bimal Jain
Published in Corporate Law
Views : 204
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