https://www.taxtmi.com/caselaws?id=7210 Depreciation was stated to be allowable on the original cost of assets in line with binding Supreme Court authority. The article also explains the test for current repairs: expenditure is revenue in nature when incurred on an existing asset to preserve and maintain it, and not to create a new asset or fresh advantage. Applying that approach, replacement of a motor vehicle body on an old chassis was treated as renovation of an existing asset rather than creation of a new one, so the amount was allowable as current repairs. The stated result is that the deductions were upheld in favour of the assessee. en-us Wed, 13 Dec 1967 00:00:00 +0530 Thu, 12 Feb 2009 16:53:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=7210 Depreciation was stated to be allowable on the original cost of assets in line with binding Supreme Court authority. The article also explains the test for current repairs: expenditure is revenue in nature when incurred on an existing asset to preserve and maintain it, and not to create a new asset or fresh advantage. Applying that approach, replacement of a motor vehicle body on an old chassis was treated as renovation of an existing asset rather than creation of a new one, so the amount was allowable as current repairs. The stated result is that the deductions were upheld in favour of the assessee. Case-Laws Income Tax Wed, 13 Dec 1967 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=7210