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TMI Blog1998 (2) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... to us at the instance of the Revenue is as to whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding and had valid materials to hold that the expenditure only represents repairs and renewal to replace the worn out motors in the plant and machinery. The assessment year with which we are concerned is 1980-81. The assessee is a manufacturer of textile ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ower the spinning frames and the cost of replacement of motors represents revenue expenditure on repairs by way of renewal. The Tribunal affirmed that view of the Commissioner and observed that, "it is not in dispute that the motors purchased with the sum of Rs. 35,727 have been used to replace the worn out motors in the plant and machinery." Learned counsel for the Revenue submitted that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nition of 'repairs' because it is only by reason of this definition of repairs that the expenditure is a revenue expenditure. If the amount spent was for the purpose of bringing into existence a new asset or obtaining a new advantage, then obviously such an expenditure would not be an expenditure of a revenue nature but it would be capital expenditure, and it is clear that the deduction which th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecome worn out needed replacement. Replacement of such motors is only for the purpose of keeping the looms and spindles running and making it possible for the production to continue. Having regard to the nature of the use to which the motors were put in the factory which had merely replaced the worn out motors and the motors were essential for running the machinery with the aid of which the produc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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