https://www.taxtmi.com/caselaws?id=71675 Expenditure on replacing a petrol engine with a diesel engine in a business car was treated as allowable because the governing test is whether the outlay preserves and maintains an existing asset or brings into existence a new asset or a new advantage in the capital field. The Tribunal found that the replacement did not create a new asset and only improved the vehicle's running efficiency in business use. It therefore allowed the claim primarily as current repairs under section 31 and, alternatively, as revenue expenditure under section 37. en-us Fri, 13 Feb 1998 00:00:00 +0530 Tue, 26 Apr 2011 15:00:27 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=71675 Expenditure on replacing a petrol engine with a diesel engine in a business car was treated as allowable because the governing test is whether the outlay preserves and maintains an existing asset or brings into existence a new asset or a new advantage in the capital field. The Tribunal found that the replacement did not create a new asset and only improved the vehicle's running efficiency in business use. It therefore allowed the claim primarily as current repairs under section 31 and, alternatively, as revenue expenditure under section 37. Case-Laws Income Tax Fri, 13 Feb 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=71675