https://www.taxtmi.com/caselaws?id=9239 Expenditure incurred in replacing corrugated iron sheets with asbestos cement sheets and carrying out allied repairs to godowns and sheds was treated as revenue expenditure because it was aimed at preserving and maintaining an existing property used to earn rental income. The governing test was whether the outlay created a new asset or a new and different advantage; on the record, there was no reliable basis to find reconstruction, substantial improvement, or a capital enhancement of the property. Mere replacement of worn-out materials, without proof of a material increase in the corpus or a fresh asset, did not convert the repairs into capital expenditure. The amount was therefore deductible in computing income from other sources. en-us Tue, 31 Jul 1973 00:00:00 +0530 Sat, 20 Jun 2009 15:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=9239 Expenditure incurred in replacing corrugated iron sheets with asbestos cement sheets and carrying out allied repairs to godowns and sheds was treated as revenue expenditure because it was aimed at preserving and maintaining an existing property used to earn rental income. The governing test was whether the outlay created a new asset or a new and different advantage; on the record, there was no reliable basis to find reconstruction, substantial improvement, or a capital enhancement of the property. Mere replacement of worn-out materials, without proof of a material increase in the corpus or a fresh asset, did not convert the repairs into capital expenditure. The amount was therefore deductible in computing income from other sources. Case-Laws Income Tax Tue, 31 Jul 1973 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=9239