2013 (10) TMI 1392

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....) This appeal of the assessee is directed against the order of CIT(A)- II, Kochi dated 08-03-2013 and pertains to assessment year 2007-08. 2. Shri P.K. Sasidharan, the ld.representative for the assessee submitted that the assessee company is engaged in the business of tourism. During the course of assessment, the assessee claimed Rs. 1,85,65,444 as current repair on the written down value of the....

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.... down value of the building was claimed as revenue expenditure as being 'current repair', in the return of income filed. Since the assessee was asked to vacate the premises by the landlord, viz. the state government, after expiry of the lease period, according to the ld.representative, the cost of construction of the building as on the date of order of the state government has to be allowed as cur....

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..... In fact, the assessee challenged the order of the state government and the High Court stayed the operation of the order by asking the parties to maintain status quo. Therefore, even after expiry of the lease period, the assessee is continuing in physical possession of the property as a lessee. Hence, this Tribunal is of the considered opinion that continuing in possession of the property after e....

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....d his reliance on the judgment of the Madras High Court in TVS Lean Logistics Ltd 293 ITR 432 (Mad). We have carefully gone through the judgment of the Madras High Court. The Madras High Court found that Explanation 1 to section 32(1) is applicable depending upon the construction of any structure or doing work in relation to renovation or extension on the improvement of the building which is put u....