Judgment :- R. JAYASIMHA BABU, J. The expenditure incurred was to replace the old and worn out parts of the machinery which was in a textile mill. The fact that the value of the parts replaced is about Rs. 12, 07, 292 does not on that account alone make it a capital expenditure. It is the finding of the appellate authority that without replacing all those parts, namely, cone winder and speed frame, production would have been adversely affected and that such replacement was in fact essential. We find no error of law in the order of the Tribunal (Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was correct in law in allowing that the deduction of Rs. 12, 07, 292 being the revenue expenditure ?) which requires to be corrected by this court. The appeal is dismissed.