TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether the expenditure incurred by a tenant in replacing the roofs of old godowns and dye-houses was deductible as revenue expenditure under the Income-tax Act, 1922.
Analysis: The expenditure was not allowable under section 10(2)(ii) because the lease did not show that the assessee had undertaken to carry out such structural repairs as a contractual obligation within that clause. It was also not treated as allowance for current repairs under section 10(2)(v), since the claim was not founded on that provision and, in any event, the replacements did not on the facts create an enhancement of value or an addition to capital assets. For section 10(2)(xv), the relevant inquiry was whether the outlay was capital or personal in nature and whether it was laid out wholly and exclusively for the purposes of business. The roofs had caved in, the work merely restored the premises to usable condition, the assessee was only a tenant for a limited term, and no enduring or permanent advantage was obtained beyond the lease period.
Conclusion: The expenditure was held to be revenue expenditure deductible in computing business income and was allowable for both assessment years.
Ratio Decidendi: Expenditure incurred by a tenant to restore leased business premises to a usable condition, without creating an enduring advantage or asset, is revenue expenditure and is deductible if it is laid out wholly and exclusively for business purposes.
TaxTMI 
TaxTMI 
