Law: Income Tax Act, 1922

Section: 10,10(2)

Law: Income Tax Act, 1961

Section: 31,37

Income-tax Act (XI of 1922)--S. 10(2)-Business expenditure-Assessee-firm carrying on business of bidi manufacturing- Cost of replacement of petrol engine by diesel engine in truck used in business of assessee-Held, business expenditure for current repairs to machinery of assessee - Indian Income-tax Act, 1961, Ss. 31 & 37. Hanuman Motor Service v. C. I. T. (1967) 66 I T R 88 (Mys.) fol. Assam-Bengal Cement Co. Ltd. v. C. I. T. (1955) 27 I T R 34; Benarsidas Jagannath, In re (1947) 15 I T R 18,5 (Lah.); C. I. T. v. Darbhanga Sugar Co. Ltd. (1956) 29 I T R 21 (Pat.); C. I. T. v. Mahalakshmi Textile Mills Ltd. (1967) 66 I T R 710; C. I. T. v. Mir Mohammad Ali (1964) 53 I T R 165; C. I. T. v. Sri Ram Sugar Mills Ltd. (1952) 21 I T R 191 (Mad.); Corporation of Calcutta v. Chairman, Cossipore and Chitfore Municipality A I R 1922 P C 27; I. R. C. v. Granite City Steamship Co. Ltd. (1927) 13 Tax Cas. (C Sess); Jansatta Karyalaya v. C. I. T. (1964) 54 I T R 792 (Guj.); Lurcott v. Wakely and Wheeler (1911) 1 K B 905 (CA); Mohamed (H.) & Co. v. C. L T. (1977) 107 I T R 637 (Guj.); New Shorrock Spg. & Mfg Co. Ltd. v. C. I. T. (1956) 301 T R 338 (Bom.); Shreeram (R. B.) & Co. (P.) Ltd. v. C. I. T. (1968) 67 I T R 428 (A P); Sun Newspapers Ltd. and Associated Newspapers Ltd. v. Federal Commissioner of Taxation (1938) 6 C L R 337 and Tata Hydro Electric Agencies Ltd. v. C. L T. (1937) 5 I T R 202 (P C) ref. JUDGMENT B. K. MEHTA, J.-The assessee herein is a registered firm which carries on business of bidi manufacturing. During the assessment year 1968-69, the assessee-firm claimed an expenditure of Rs. 9,300 incurred for replacing a petrol engine by a diesel engine in the assessee's truck which was being used in its business. The assessee, claimed the said replacement cost of Rs. 9,300 as expenses for current repairs and in support of its claim reliance was placed by the assessee on the decision of the Mysore High Court in Hanumari Motor Service v. Commissioner of Income-tax (1967) 66 I T R 88 (Mys.). The Income-tax Officer rejected this claim of the assessee, as in his opinion the decision of the Mysore High Court was not applicable to the facts before him as the assessee…

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