TaxTMI 
TaxTMI 
1999 (12) TMI 136
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....pairs and maintenance". The assessee was asked to explain the nature of such expenses. On the basis of details furnished by the assessee it was found by the Assessing Officer that such expenditure was incurred on demolition of some of the original walls and rebuilding part thereof to suit the office requirements, preparation of number of temporary wooden partitions for the office purpose, painting and decorative wood panelling and extensive electric wiring and fittings. In addition to all such expenses the assessee also incurred another expenditure of Rs. 71,114 towards furniture and fixtures consisting of chairs, telephone counter, office counter, cabinet, tables, teapots, sofa etc. which was capitalised by the assessee itself as a capital....
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.... 160 ITR 857/26 Taxman 281. Aggrieved by the said order, the assessee is in appeal before the Tribunal. 4. The learned counsel for the assessee Mr. K.A. Sathe, has vehemently assailed the order of CIT(A) by contending that the assessee does not acquire an asset or an advantage of enduring nature by incurring expenditure in the rented premises. It was submitted by him that the expenditure in the nature of capital i.e. on acquisition of furniture of various types was already capitalised by the assessee and it was only expenditure in the nature of repairs and replacement to have optimum use of the rented premises which has been claimed as revenue expenditure. In support of his contentions he relied on the decision of Karnataka High Court in....
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....t always be on capital account. It may also be on revenue account on the facts of the case, if in the commercial sense facilitates the trading operations or enabling the management to conduct all business of the assessee to be carried on more efficiently or more profitably, However, if the advantage is in the capital field, it will be disallowable Empire Jute Co. Ltd.'s case. (2) Where the expenditure incurred by the assessee is by way of renovation it could not be considered either as repair or revenue expenditure. Such expenditure should be treated as capital expenditure. Recent decision of Supreme Court in Ballimal Naval Kishore v. CIT [1997] 224 ITR 414/90 Taxman 402. (3) Where the expenditure incurred is in the capital field but ....
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.... perpetual lessees of the flat. 7. The perusal of the second agreement between the assessee and the above lessees dated 1-9-1988 shows that these lessees have transferred their leasehold rights in the flat to the assessee against same consideration of Rs. 3,37,800 which was paid by them to the landlord. Thus in our opinion, the assessee firm has become the perpetual lessee. It is in this background, the nature of the expenditure incurred by assessee is to be seen. 8. The perusal of assessment order shows that assessee had incurred a substantial amount of Rs. 2,27,735 under the head "repairs and maintenance". This expenditure was incurred on rebuilding of interior walls, wooden partitions, paintings of all rooms with plastic emulsion p....