TaxTMI 
TaxTMI 
2014 (7) TMI 1191
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....ppeal filed by the assessee is directed against the order of ld. CIT(A) - 21 Mumbai dated 2-3-2012 and the solitary issue arising out of the same relates to the disallowance made by the A.O. and confirmed by the ld. CIT (A) by treating the hoarding expenses amounting to Rs. 8,82,666/- as capital in nature. 2. The assessee in the present case is a partnership firm which is engaged, inter alia, in ....
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....ong period. According to the A.O., the hoarding expenses claimed by the assessee thus resulted in enduring benefit to the assessee and the same were not in the nature of current repairs. He accordingly treated the hoarding expenses of Rs. 8,82,666/- incurred by the assessee as capital expenditure and allowed only depreciation thereon at 10% which resulted in the net disallowance of Rs. 7,94,399/-.....
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....s discussed in para-7 of the assessment order the expenditure incurred were on account of major and extensive repairs & maintenance and even replacement of major portions of existing structures and therefore, were not normal/routine repairs & maintenance expenses. These expenses were in the nature of capital expenditure giving benefit of enduring nature which was in capital field. The AO was ther....
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....ng was regularly required to be done. Similarly, cementing and plastering of foundation was also required to be done regularly in order to maintain the hoarding structures. Keeping in view the nature of business activity carried on by the assessee, we are of the view that the expenditure incurred by the assessee to maintain the structures used for hoardings is of revenue in nature especially when ....