A reconditioned van costing RM80,000 was bought by Dahlia Sdn Bhd for transporting the companys workers and it was not licensed as a commercial vehicle. The reconditioned van had been overhauled with parts of high quality and it had undergone functional and safety tests until the van appeared new. The company claimed capital allowances on the expenditure of RM80,000 on the ground that the van purchased should be categorized as a new vehicle.

Required: Discuss the tax treatment of the reconditioned van.