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2014 (12) TMI 753 - AT - Income TaxDeletion of disallowance of expenses on repairs – Capital expenses or not – Held that:- Held that:- No material was brought on record to show that any new asset was acquired by the assessee – in ACIT vs. Desai Bros. [1974 (9) TMI 9 - GUJARAT High Court] it has been held that even replacement of the petrol engine by a diesel engine would not bring into existence a new asset and was allowable as current repairs - replacement of parts of a machine, even if such replacement was more than cost of the machine itself, would qualify for deduction as revenue expenditure as no new asset or advantage of enduring benefit was brought into existence by any such expenditure - CIT(A) was rightly of the view that after treating 55% of the expenditure of ₹ 71,86,752/- as revenue, there was no justifiable basis for the AO to arbitrarily treat 45% of the same expenditure as capital in nature - The expenditure incurred can be either capital or revenue but it cannot be partly Revenue and partly capital - In respect of balance amount of ₹ 24,25,216/-, the CIT(A) found that the same was incurred for replacing the existing asset and not for acquiring any new asset – there was no material to show that any new asset which was not existing earlier was acquired by the assessee incurring the expenditure of Rs. ₹ 24,25,216/-, there is no reason to interfere with the order of the CIT(A) – Decided against revenue.
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