TaxTMI 
TaxTMI 
2015 (9) TMI 705
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....eals) in deleting the disallowance made by the Assessing Officer by treating the repairs and maintenance expenses of Rs. 4,40,12,739 incurred by the assessee on building and theatres as capital expenditure. 2. The assessee in the present case is a company, which is engaged in the business of operating cinema theatres (multiplex) taken on lease. The return of income for the year under consideration was filed by it on September 30, 2009 declaring total income of Rs. 1,55,24,250. In the profit and loss account filed along with the said return, the expenditure incurred on maintenance of building amounting to Rs. 2,52,11,901 and on maintenance of theatres amounting to Rs. 1,88,838 was debited by the assessee. When the assessee was called upon b....
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.... Hyderabad and Income-tax Appellate Tribunal, Hyderabad. The Commissioner of Income-tax (Appeals)-II, Hyderabad, vide I. T. A. Nos. 317, 318/08-09 and 0248/CIT(A)-II/07-08 dated December 24, 2009 for the assessment years 2003-04, 2005-06 and 2006-07 and in I. T. A. No. 190/CIT(A)-II/2009-10 dated March 14, 2012 for the assessment year 2007-08 respectively, in the appellant's own case, i.e., formerly known as M/s. Chaya Lakshmi Creations (P) Limited, (subsequently the assessee changed the name to SP Cinemas (P) Ltd. with the same PAN : AABCC 7343L) has upheld the contention of the appellant and directed the allowance of the revenue expenditure incurred by the appellant on repairs and maintenance of building and theatre. On appeal by the ....
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....appeal before the Tribunal. 4. We have heard the arguments of both sides and also perused the relevant material on record. Although the learned Departmental representative has contended that the question as to whether the expenditure in question incurred by the assessee on maintenance of building and theatres is capital or revenue will depend on the cost of acquisition of the relevant assets and the turnover of the assessee, we are unable to accept the same. In our opinion, the nature of the expenditure incurred by the assessee on repairs and maintenance of the building and theatres is required to be seen in the light of the nature of the business of the assessee in order to decide whether the same is capital or revenue. In this regard, we....
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....flooring as capital expenditure. However, he allowed the other expenses as revenue expenditure. The assessee has also paid consultancy charges. It is pertinent to note that when the assessee has repaired the false ceiling of the cinema theatre, he has to ensure the sound proof inside the theatre building. Therefore, he has to necessarily consult a con sultant and there is nothing wrong in paying the consultancy charges for such repairs. False ceiling was repaired without altering the struc ture of the building. The assessee has also incurred expenditure in purchasing cleaning material, projector maintenance, payment of charges to temporary staff, etc. These expenses are only for the purpose of carrying on of the business and does not bring ....