https://www.taxtmi.com/caselaws?id=69343 Replacement of a worn-out engine in a business van was treated as revenue expenditure because the van remained the same business asset and the engine was only a component of it. The replacement of an old part did not amount to acquisition of a new asset, and current repairs are not limited to petty repairs; renewal can still retain a revenue character. The fact that fitting a diesel engine produced fuel economy and some enduring benefit did not, on these facts, convert the outlay into capital expenditure. The expenditure was therefore allowable as a deduction. en-us Sat, 17 Apr 1982 00:00:00 +0530 Wed, 06 Apr 2011 12:56:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=69343 Replacement of a worn-out engine in a business van was treated as revenue expenditure because the van remained the same business asset and the engine was only a component of it. The replacement of an old part did not amount to acquisition of a new asset, and current repairs are not limited to petty repairs; renewal can still retain a revenue character. The fact that fitting a diesel engine produced fuel economy and some enduring benefit did not, on these facts, convert the outlay into capital expenditure. The expenditure was therefore allowable as a deduction. Case-Laws Income Tax Sat, 17 Apr 1982 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=69343