1983 (2) TMI 95

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....on of the entire purchase value of the car KLA 6906 as expenditure in computing the income of the assessee. The assessee is a firm engaged in the production and distribution of cinema films. The assessee owned already a car with the number KLA 1349. This was a Studybaker car. The spare-parts for this car were not readily available. The assessee, it would seem, purchased another Studybaker car bear....

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.... the ground that this is a case where the assessee purchased a capital asset and thereafter scrapped it, that the assessee is entitled to only the difference between the written down value and the scrap value as a deduction, that the assessee was not able to furnish proper details in respect of this and that admittedly car No. KLA 6906 is not of nil value as at the end of the previous year. He, th....

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.... the case, the assessee is entitled to the claim of the deduction of the cost of the car as revenue expenditure. The assessee has been able to show that the purpose in purchasing the car is only to use the parts therein for being fitted in the other car that was with the assessee. After the parts have been removed and after the registration and fitness certificate for this vehicle have been cancel....