M/S. BALLIMAL NAVAL KISHORE & ANR. vs COMMISSIONER OF INCOME TAX

The Supreme Court interpreted Section 10(2)(v) of the Income Tax Act, 1922, regarding the deduction for 'current repairs'. The Court held that 'current repairs' refer to expenditures that preserve or maintain an existing asset without creating a new asset or advantage. The Court overturned the Bombay High Court's ruling, which had favored the Revenue, and ruled in favor of the assessee, allowing the deduction of Rs. 62,977 for repairs made to the cinema theatre.