https://www.taxtmi.com/caselaws?id=12329 Expenditure incurred by an assessee to convert leased godown premises into office premises was assessed for classification under s. 37 as revenue or capital. The HC held that business purpose alone is insufficient; the outlay must also not be capital in nature, and classification depends on broadly applied tests rather than any fixed rule. As the improvements did not create an asset owned by the assessee and merely conferred a business advantage of modern premises at low rent, yielding savings of revenue outgo over a long period, the expenditure was properly treated as revenue. The appeal was dismissed. en-us Mon, 10 Jun 2002 00:00:00 +0530 Wed, 24 Dec 2025 17:07:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=12329 Expenditure incurred by an assessee to convert leased godown premises into office premises was assessed for classification under s. 37 as revenue or capital. The HC held that business purpose alone is insufficient; the outlay must also not be capital in nature, and classification depends on broadly applied tests rather than any fixed rule. As the improvements did not create an asset owned by the assessee and merely conferred a business advantage of modern premises at low rent, yielding savings of revenue outgo over a long period, the expenditure was properly treated as revenue. The appeal was dismissed. Case-Laws Income Tax Mon, 10 Jun 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=12329