1963 (4) TMI 88

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..... ssee is a public limited company which runs a railway known as Dehri-Rohtas Light Railway over a distance of 24 miles from Dehri-on-Sone to Rohtas and also another branch line from Sasaram to Sugerkher over a distance of 15 miles. During the accounting years corresponding to the assessment years 1953-54 and 1954-55, the assessee spent ₹ 35,306 and ₹ 14,095 respectively in replacing t .....

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..... ing question of law for the opinion of the High Court: Whether, on the facts and in the circumstances of the case, the sums of ₹ 34,306 in the assessment year 1953-54 and ₹ 14,095 in the assessment year 1954-55, incurred for replacement of the old and worn out sleepers by new ones, were rightly treated as revenue expenditure of the years of account? The question of law arisin .....

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..... r a substantial part of the entire machinery. It was further pointed out in that case that renewal may be either repair or reconstruction, and renewal is repair only if it is restoration of, or replacement of, subsidiary parts of old machinery. If, on the other hand, there is replacement of the entire machinery or substantially the whole of it, it is a case of renewal of machinery and not repair. .....

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