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TMI Blog1960 (9) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... Indian Income-tax Act ? The facts briefly are that the assessee is a transport company running a number of lorries for the transport of passengers. During the financial year 1953-54, which corresponds to the assessment year 1954-55 a sum of ₹ 14,700 was expended by the assessee company in fitting new bodies in place of the old ones on five of the lorries which were being run by the company. The company claimed that this amount was deductible as current repairs within the meaning of section 10 (2) (v) of the Indian Income-tax Act. The Income-tax Tribunal held that this amount was allowable and decided in favour of the assessee. The Commissioner of Income-tax then moved the Tribunal to state a case for the opinion of this court. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g customers because it is failing to renew or adequately repair the lorries or make them look attractive. The body forms only a small part of the entire vehicle as far as the cost is concerned. It is a matter which does not have to be proved by evidence that the chassis and the engine are the most expensive parts of a lorry. These have to be imported from outside. The bodies are built by local craftsmen and are comparatively less expensive. There is no material on the record to show if any part of the material from the old bodies was used, but even if no part of it was used, it can scarcely be said that the company was acquiring a new asset or adding to the number of its vehicles. The replacement of a tyre or a wheel would certainly be deem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ., who held that the expenditure incurred in replacing the boiler was in the nature of revenue expenditure. In as case, which came before the Privy Council from Rhodesia, their Lordships were called upon to consider whether the expenditure incurred in renewing 74 miles of railway track owned by a railway company was capital expenditure or revenue expenditure. The total railway track owned by the company ran into 394 miles, and the Judicial Committee held that the expenditure incurred in renewing 74 miles must be deemed to be revenue expenditure. It is, therefore, really a question of degree. Where a comparatively small amount of money is spent in again bringing a piece of machinery, a house, a factory or a vehicle into good running conditio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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