TaxTMI 
TaxTMI 
2013 (11) TMI 158
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....ainst business income under the head "repairs and maintenance". The Assessing Officer asked the assessee to provide details of those expenses which were filed by the assessee vide letter dated August 29, 2007, the Assessing Officer stated the details of "repairs and maintenance" above Rs.50,000 at page 2 of the Assessing Officer as under : Item Party Amount (Rs.) Bill date (a) Roof work at road side balcony (carpentry) Jayraj Enterprises 1,06,516.8 25/3/2005 (b) Plumbing work Bagwe Engineering Co. 1,41,287.5 11/02/2005 (c) Civil work done - paver block in compound Techno Repairs Construction ....
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.... Expenditure incurred towards re-doing or repairing of the assets already existed. However, the learned Commissioner of Income-tax (Appeals) did not agree and has confirmed the action of the Assessing Officer vide paragraph 3.2 of the impugned order which reads as under : I have considered the submissions made by the appellant during the proceedings and also gone through the detailed assessment order and the reasons given therein by the Assessing Officer while making net addition of Rs. 9,93,383. The facts culled out from the record are that a major repairs and construction work was carried out in the rented premises by the appellant which includes roof work, plumbing, civil and carpentry work, false ceiling and other such construction w....
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....d. The ground of appeal is dismissed. Hence, this appeal filed by the assessee. The learned authorised representative submitted that the assessee has incurred the said expenditure, the details of which are mentioned in the bills and discussed by the Assessing Officer in the assessment order, only for renovating the premises of which the assessee is not the owner. He submitted that no new asset has been created by the assessee by spending the amount which the Assessing Officer has considered as capital expenditure. He submitted that the learned Commissioner of Income-tax (Appeals) himself has not disputed the fact that the expenditure was incurred by the assessee to carry out fixing of the water tank, construction of partition and fixi....
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....cement of old barbed wire around the compound by a compound-wall and also the expenditure incurred in removing the false roof of the said building putting in asbestos sheet as revenue expenditure. It was held that it is not the law that in every case, if an enduring benefit is obtained, the expenditure for incurring it must be treated as capital expenditure. Considering the above cases and the fact that the assessee has incurred the expenditure for renovating the existing building which is used by the assessee for its business purposes, we hold that the said expenditure aggregating Rs. 10,29,880 is revenue expenditure and is not a capital expenditure. Therefore, the same is allowable in the assessment year under consideration as revenue ....