1987 (5) TMI 70

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.... assess the profit of Rs. 4,77,000 made on the sale of the house under the head 'income from other sources' was that the house did not stand registered in the name of the assessee vendor, and so he was not its full owner and so, according to him, profit arising from the sale of the said property could not be subjected to capital gains tax and, in his opinion, it could be assessed only under the head 'income from other sources. On appeal the ld. CIT(A) did not agree with the above finding of the ITO and he directed that as the asset in question was the capital asset of the assessee, income from the sale thereof ought to be assessed under the head 'Capital gains' and in as much as the assessee had purchased another capital asset-a residential....

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....m of Rs. 89,200 has been claimed on repairs and renewals as against Rs. 34,100 claimed last year. The abnormal increase in these expenses has been explained by the assessee in his letter dt. 29th Feb., 1984 and is stated to be on account of redoing the wooden wall panels and partitions, etc. which are stated to have become obsolete due to wear and tear and having been damaged by the termites. After considering the explanations of the assessee and keeping in view the fact that by redoing the wooden panels the assessee has acquired assets of enduring nature, the claim of the assessee cannot be allowed in toto. I estimate the cost of these wooden panels at Rs. 20,000 in the absence of exact information to this effect. Depreciation at appropria....

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....ion laws (Amendment) Act, 1970 w.e.f.1st April, 1971and read, inter alia, as below: "Where the business or profession is carried on in a building not owned by the assessee but in respect of which the assessee holds a lease or other right of occupancy and any capital expenditure is incurred by the assessee for the purposes of the business or profession after the 31st day of March, 1970, on the construction of any structure or doing of any work in or in relation to, and by way of renovation or extension of, or improvement to, the building, then, in respect of depreciation of such structure or work, the following deductions shall........be allowed." From a bare reading of the aforesaid sub-section, it is clear that, if any capital expend....