https://www.taxtmi.com/caselaws?id=38838 Expenditure on replacing a truck's worn-out petrol engine with a diesel engine was treated as current repairs and deductible revenue expenditure because the outlay preserved and maintained an existing business asset rather than bringing into existence a new asset or enduring capital advantage. The decisive test was whether the replacement was part of the continual process of using and maintaining the asset, or whether it amounted to renewal of the entire machinery. As the truck remained the same business asset and only an unserviceable part was replaced, the expense was attributed to running the business and not to capital account. en-us Thu, 05 Sep 1974 00:00:00 +0530 Thu, 15 Jan 2026 13:20:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=38838 Expenditure on replacing a truck's worn-out petrol engine with a diesel engine was treated as current repairs and deductible revenue expenditure because the outlay preserved and maintained an existing business asset rather than bringing into existence a new asset or enduring capital advantage. The decisive test was whether the replacement was part of the continual process of using and maintaining the asset, or whether it amounted to renewal of the entire machinery. As the truck remained the same business asset and only an unserviceable part was replaced, the expense was attributed to running the business and not to capital account. Case-Laws Income Tax Thu, 05 Sep 1974 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=38838