1992 (10) TMI 35

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....respect of the construction of roads at the factory in Chainpura, Ghewaria Mines and Shiv Bhandar. According to the assessee, the roads were kucha and the expenditure had been incurred for facilitating the running of the motor vehicles for transportation of goods from the mines to the factory. The expenditure was claimed to be of revenue nature. The Income-tax Officer took the view that the exp....

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....,375 incurred by the assessee on repairs of kucha roads was revenue in nature and, therefore, allowable expenditure ?" The Income-tax Appellate Tribunal held that the assessee was entitled to the expenditure of the aforesaid amount and finding no merit in the contention of the Department, rejected the application. The Department has now approached this court by means of the present application.....

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.... to revenue but to capital. In the instant case, the expenditure incurred was for repairs of the roads. Repair means "restore (building, machine, garment, tissue, strength, etc.) to good condition ; renovate or mend by replacing or refixing parts or compensating loss or exhaustion ". Incurring of expenditure on repairs could not be considered to be a payment made "once and for all". Conseque....