https://www.taxtmi.com/caselaws?id=29018 The High Court ruled in favor of the Department, holding that the expenditure incurred by the assessee for replacing 40 H.P. engines with 60 H.P. engines was of a capital nature. The replacement provided an enduring benefit by increasing the efficiency and operational economy of the boats, leading to a one-time investment rather than a recurring cost. The Court concluded that the expenditure did not qualify as current repairs under Section 31 and was deemed to be capital in nature under Section 37 of the I.T. Act. en-us Tue, 24 Nov 1981 00:00:00 +0530 Wed, 10 Mar 2010 12:15:52 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=29018 The High Court ruled in favor of the Department, holding that the expenditure incurred by the assessee for replacing 40 H.P. engines with 60 H.P. engines was of a capital nature. The replacement provided an enduring benefit by increasing the efficiency and operational economy of the boats, leading to a one-time investment rather than a recurring cost. The Court concluded that the expenditure did not qualify as current repairs under Section 31 and was deemed to be capital in nature under Section 37 of the I.T. Act. Case-Laws Income Tax Tue, 24 Nov 1981 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=29018