https://www.taxtmi.com/caselaws?id=352899 Explanation 1 to Section 32(1) of the Income-tax Act does not deem every outlay on leased premises to be capital expenditure; the classification still depends on the commercial nature of the expense and whether it creates an asset or enduring advantage. Refurbishment, repairs and improvements to leased buildings are treated as revenue expenditure where they are incurred for business use. Expenditure on construction of buildings or superstructures on leased land must be examined by reference to the lease terms, the commercial effect of the arrangement, and the registration and stamping of the lease documents. Amounts written off for showrooms or service stations that could not commence business remain revenue in nature, while a mere provision for free service expenses is not allowable unless actually accrued or incurred. en-us Tue, 05 Dec 2017 00:00:00 +0530 Tue, 11 Sep 2018 14:42:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=352899 Explanation 1 to Section 32(1) of the Income-tax Act does not deem every outlay on leased premises to be capital expenditure; the classification still depends on the commercial nature of the expense and whether it creates an asset or enduring advantage. Refurbishment, repairs and improvements to leased buildings are treated as revenue expenditure where they are incurred for business use. Expenditure on construction of buildings or superstructures on leased land must be examined by reference to the lease terms, the commercial effect of the arrangement, and the registration and stamping of the lease documents. Amounts written off for showrooms or service stations that could not commence business remain revenue in nature, while a mere provision for free service expenses is not allowable unless actually accrued or incurred. Case-Laws Income Tax Tue, 05 Dec 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=352899