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TMI Blog1981 (1) TMI 149X X X X Extracts X X X X X X X X Extracts X X X X ..... tor Car by 'Diesel Engine' is a revenue expenditure. 2. The assessee is a registered firm of 9 partners. It has claimed under car expenses a sum of Rs. 18,142 representing cost of new Diesel Engine and Rs. 2,697 representing fitting charges. Both these items are claimed as revenue expenditure on the ground that these represent repair charges to already existing asset and were not incurred to brin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t or to have a substantial replacement or renovation, and not for preserving and maintaining the asset for the purpose of use in the business. According to the ITO the object of the expenditure was to bring a new asset into existence in the present case. So, the expenditure of Rs. 20,839 was treated as capital and disallowed accordingly. However, he allowed depreciation on the capital expenditure. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hra Pradesh High Court in the case of R.B. Shreeram & Co. (P.) Ltd. vs. CIT (1968) 67 ITR 428 (AP). 5. On the other hand, the ld. counsel for the assessee relied on the Tribunal's decision cited by the AAC. He also relied on the decision of the Addl. CIT vs. Desai Bros. (1977) 108 ITR 14 (Guj). 6. It is admitted that the car was purchased in 1970 and was used for nearly seven years. It is the ca ..... X X X X Extracts X X X X X X X X Extracts X X X X
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