https://www.taxtmi.com/caselaws?id=21535 The High Court of Calcutta ruled in favor of the assessee, determining that the cost of replacing petrol engines of trucks with diesel engines constituted revenue expenditure for the assessment year 1977-78. The Court emphasized that the replacement did not create a new asset or enduring benefit, but rather maintained an existing one, making it akin to current repair and thus revenue in nature. The expenditure was deemed essential for the operation of the trucks and the profit-earning activity of the assessee, aligning with precedents that such replacements are typically considered revenue expenditure to preserve and maintain assets without creating new advantages. en-us Tue, 11 Jul 1989 00:00:00 +0530 Wed, 25 Nov 2009 12:07:33 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=21535 The High Court of Calcutta ruled in favor of the assessee, determining that the cost of replacing petrol engines of trucks with diesel engines constituted revenue expenditure for the assessment year 1977-78. The Court emphasized that the replacement did not create a new asset or enduring benefit, but rather maintained an existing one, making it akin to current repair and thus revenue in nature. The expenditure was deemed essential for the operation of the trucks and the profit-earning activity of the assessee, aligning with precedents that such replacements are typically considered revenue expenditure to preserve and maintain assets without creating new advantages. Case-Laws Income Tax Tue, 11 Jul 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=21535