1982 (4) TMI 174

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..... the year it claimed an amount of Rs. 23,250 as repairs to its van (truck) KLF 725 purchased on 2nd April, 1969. Since the expenditure involved fitting of a diesel engine, it was disallowed as capital expenditure. The first appellate authority found that the petrol engine was worn-out after use for about 20 years. It could not be rebored further. It needed replacement. It was replaced by a diesel .....

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..... epairs. Repairs always mean renewal. On that account, it does not become a capital expenditure. Replacement of old petrol engines by diesel engines was held to be revenue expenditure in a number of cases. viz., Hanuman Motor Services vs. CIT (1967) 66 ITR 88 (Mys), CIT vs. Khalsa Nirbhai Transport Co. Ltd. (1971) 82 ITR 741 (P H), Addl. CIT vs. Desai Bros. (1977) 108 ITR 15 (Guj) and CIT vs. C.P .....

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