Meaning of “Current repairs”

Case Name : New shorrock spg. & Mfg. Co. Ltd. Vs. Cit 

Citation : [1956] 30 itr 338 (bom.)

Court : Bombay high court

Section :  30 & 31

Meaning : The word ‘current’ in the expression ‘current repairs’ does not mean ‘petty’ but denotes such repairs which are attended to when the need for them arises and are not allowed to fall into arrears or to be accumulated. If the assessee, although the need has arisen, does not attend to that need and allows the repairs to get accumulated, it could not be said that when he is expending money on these repairs he is expending them on current repairs. But if the need for repairs had not arisen before they were actually effected, even repairs done long after the acquisition of the asset would be ‘current’ repairs.

Case Name : A.Y.S. Parisutha nadar Vs. Cit 

Citation : [1962] 46 itr 1041 (mad.)

Court : Madras high court

Section :  30 & 31

Meaning : The expression ‘current repairs’ indicates an expenditure that is incurred by an assessee in relation to the building, machinery, etc., Giving rise to the income under assessment, which expenditure was necessitated during the time the business was conducted and by reason of the business itself, such as on account of wear and tear and the like. It does not appear to be reasonable to hold that there could be any expenditure incurred on account of current repairs either before the business was started or after the business had ceased.

Case Name : Addl. Cit Vs. Desai bros. 

Citation : [1977] 108 Itr 14 (guj.)

Court : Gujarat high court

Section :  30 & 31

Meaning : The expression ‘current repairs’ used in section 10(2)(v) of the 1922 act means expenditure on buildings, machinery, plant or furniture which is not for the purpose of renewal or restoration, which is only for the purpose of preserving or maintaining an already existing asset, which does not bring a new asset into existence or does not give to the assessee a new or different advantage and they must be repairs which are attended to as and when the need for them arises.

Case Name : Cit Vs. Chowgule & co. (P.) Ltd. 

Citation : [1995] 81 Taxman 384/214 itr 523 (bom.)

Court : Bombay high court

Section :  30 & 31

Meaning : The expression ‘current repairs’ has not been defined in the act. It has, therefore, to be taken in its popular or commercial sense. In commercial parlance, it means repairs which are undertaken in the normal course of user for the purpose of preservation, maintenance or proper utilisation.

The expression ‘current repairs’ in section 31 does not mean ‘petty repairs’ or repairs necessitated by wear and tear during the particular year. Payments on account of ‘current repairs’ must be understood in contradistinction to payments for ‘addition’ or ‘improvement’.

Case Name : Ballimal naval kishore Vs. Cit 

Citation : [1997] 90 taxman 402/224 itr 414 (sc)

Court : Supreme court

Section :  30 & 31

Meaning : In new shorrock spg. & Mfg. Co. Ltd. V. Cit [1956] 30 itr 338 (sc), chagla, c.J., Speaking for the division bench, observed that the expression ‘current repairs’ means expenditure on buildings, machinery, plant or furniture which is not for the purpose of renewal or restoration but which is only for the purpose of preserving or maintaining an already existing asset and which does not bring a new asset into existence or does not give to the assessee a new or different advantage. The chief justice observed that they are such repairs as are attended to as and when the need arises and that the question when a building, machinery, etc., Requires repairs and when the need arises must be decided not by any academic or theoretical test but by the test of commercial expediency.

Case Name : Cit Vs. Saravana spg. Mills (p.) Ltd. 

Citation : [2007] 163 Taxman 201/293 itr 201 (sc)

Court : Supreme court

Section :  30 & 31

Meaning : The expression ‘current repairs’ denotes repairs which are attended to when the need for them arises from the viewpoint of a businessman. The word ‘repair’ involves renewal. However, the words used in section 31(i) are ‘current repairs’.

Case Name : Cit Vs. Darbhanga sugar co. Ltd. 

Citation : [1956] 29 Itr 21 (pat.)

Court : Patna high court

Section :  30 & 31

Meaning : The expression ‘current repairs to machinery’ which occurs in section 10(2)(v) of the 1922 act must be interpreted to mean repairs to machinery in the current accounting year. In other words, ‘current’ is used in contradistinction to past or arrear repairs.