TaxTMI 
TaxTMI 
TaxTMI 
2017 (2) TMI 70
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....eal of assessee is against the order of CIT(A) confirming the addition made by AO on account of expenditure of repair and renovations claimed by assessee as revenue treating the same as capital by taking the same as current repairs. For this assessee has raised following ground No. 1: - "1. On the fact and circumstances of the case, the learned Commissioner of Income Tax (A) erred in confirming addition of Rs. 44,64,049/- treating the current repairs as Capital Expenditure without appreciating that complete expenditure was of repairing that included removing of plaster and re-doing and three was no enduring benefit or profit earning apparatus being acquired." 3. Briefly stated facts are that the AO during the course of assessment p....
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....xpenses had been incurred for the renovation of office premises of the appellant firm located in Shabnam Apartments. In the course of appellate proceedings, the appellant has furnished copy of Invoice No.02A-2010 dated 01.01.2011 issued by Z- Fabricator, Murnbai for Rs. 46,37,349/- for "repairs, rehabilitation and structural glazing of the Shabnam Apartment". A perusal of the said invoice reveals that major expenses were incurred towards removing existing aluminium composite panel (ACP), providing and fixing of 4mm thick ACP and ACP louvres, providing and fixing structural glazing works with 5mm thick reflected, toughened glass on semi-anodized aluminium frame with necessary fixtures for fixed glass, removing of existing plaster and redoing....
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....aforesaid legal position, it is clear that the expenses incurred by the appellant for replacement of existing ACP and providing structural glazing works with reflected and toughened glass on semi-anodized aluminium frame etc. was not an expenditure for preserving and maintaining an already existing asset. The object of the impugned expenditure incurred -by the appellant was not to preserve or maintain an already existing asset but to obtain a new and enduring advantage. The said expenditure was not necessary for maintaining or preserving the building but was incurred with a view to making distinct improvement and upgrading the appearance and ambience of office premises of the appellant. Thus, the expenditure of Rs. 49,60,853/- admittedly in....
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...., breaking of RCC member and redoing of existing plasters and glazing of the buildings. Other expenses like repair and maintenance and miscellaneous expenses were carried out. The assessee claimed that this building is part of balance-sheet and assessee being owner it has already capitalized building when it was purchased. But now on the same building for redoing the entire building, the assessee has carried out repair and renovation and incurred these expenses of Rs. 49, 60,053/-. The learned Counsel for the assessee relied on the decisions of Hon'ble Delhi High Court in the case of CIT Vs. Modi Industries Ltd. (2011) 339 ITR 467 (Delhi) wherein Hon'ble High Court held that insofar as purchase of pumping sets, Mono block pump with HP Motor....