https://www.taxtmi.com/caselaws?id=6872 Replacement of worn-out petrol engines in existing buses was treated as current repairs where the expenditure preserved and maintained the business asset in working condition rather than bringing a new asset into existence. The governing test under section 10(2)(v) of the Indian Income-tax Act, 1922 was whether the outlay merely repaired an existing asset or resulted in renewal, reconstruction, or a new advantage. On the facts, the buses remained the relevant machinery and the engine replacement did not amount to reconstruction of a new asset. The deduction was therefore allowable. en-us Thu, 22 Sep 1966 00:00:00 +0530 Fri, 06 Feb 2009 18:25:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6872 Replacement of worn-out petrol engines in existing buses was treated as current repairs where the expenditure preserved and maintained the business asset in working condition rather than bringing a new asset into existence. The governing test under section 10(2)(v) of the Indian Income-tax Act, 1922 was whether the outlay merely repaired an existing asset or resulted in renewal, reconstruction, or a new advantage. On the facts, the buses remained the relevant machinery and the engine replacement did not amount to reconstruction of a new asset. The deduction was therefore allowable. Case-Laws Income Tax Thu, 22 Sep 1966 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6872