Current repairs deduction denied for substantial theatre renovation treated as capital expenditure under income-tax law.

Expenditure qualifies as "current repairs" only where it preserves or maintains an existing asset and is incurred to meet ordinary need as it arises, rather than creating a new asset or conferring a new or different advantage. Applied to extensive theatre renovation involving new machinery, furniture, sanitary fittings, electrical wiring, and major structural repairs, the work was treated as substantial renovation and not routine maintenance. The expenditure was therefore held to be capital in nature and outside the scope of deductible current repairs under section 10(2)(v) of the Indian Income-tax Act, 1922.

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Issues: Whether the expenditure incurred on extensive renovation of the theatre, including new machinery, new furniture, new sanitary fittings, new electrical wiring, and major structural repairs, qualified as "current repairs" deductible under section 10(2)(v) of the Indian Income-tax Act, 1922.

Analysis: The expression "current repairs" was construed to mean expenditure incurred for preserving or maintaining an existing asset, and not expenditure bringing a new asset into existence or conferring a new or different advantage. The test accepted was whether the expenditure was revenue in nature and attended to as and when need arose, as distinguished from a renewal, restoration, or total renovation. On the facts, the work done was not confined to ordinary repairs; it amounted to a substantial renovation of the theatre, with fresh installations and extensive rebuilding of the structure.

Conclusion: The expenditure did not qualify as "current repairs" and was capital in nature. The disallowance was , and the claim for deduction failed.

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