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M/S. Ballimal Naval Kishore & Anr vs Commissioner Of Income Tax on 10 January, 1997

4.6.1. We have, with due regards, perused the ruling of the Hon'ble Supreme Court in the case of Ballimal Naval Kishore and Another v. CIT reported in (1997) 224 ITR 414 (SC) as relied on by the revenue. In the said case, the Hon'ble Supreme Court, while analysing the provisions of s. 10(2)(v) of the IT Act, 1922, had referred to the ruling of the Bombay High Court in the case of New Shorrock Spinning and Manufacturing Co. Limited reported in (1956) 30 ITR 338(Bom) wherein Mr. Justice 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 learned Chief Justice observed that they are such repairs as are attended to as and when 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. The learned Chief Justice observed:
Supreme Court of India Cites 9 - Cited by 159 - B P Reddy - Full Document

Commissioner Of Income-Tax vs Soorajmall Nagarmull on 28 January, 1997

has been defined to mean a transaction in which a contract for the purchase or sale of a commodity is settled otherwise than by the actual delivery or transfer of such commodity. However, as stated above, the assessee was not a dealer in foreign exchange. The assessee was an exporter of cotton. In order to hedge against losses, the assessee had booked foreign exchange in the forward market with the bank. However, the export contracts entered into by the assessee for export of cotton in some cases failed. In the circumstances, the assessee was entitled to claim deduction in respect of Rs. 13.50 lakhs as a business loss. This matter is squarely covered by the judgment of the Calcutta High Court, with which we agree, in the case of CIT vs. Soorajmull Nagarmull (1981) 22 CTR (Cal) 8 : (1981) 129 ITR 169 (Cal).
Supreme Court of India Cites 1 - Cited by 53 - Full Document
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