2017 (12) TMI 411

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....nd a commission agent and is deriving income from house property. He filed return of income for the relevant assessment years. The assessments were taken up for scrutiny under Section 143(3) of the Income Tax Act, 1961 and the assessable income was arrived at. Subsequently, notices under Section 148 of the said Act were issued and the assessments were reopened. The reasons for reopening were communicated to the assessee and thereafter, the notices under Section 143(2) of the said Act were served on the assessee. During the course of assessment proceedings, the assessee claimed depreciation allowable at 100% on temporary wooden structure for interior decoration effected to the buildings and the showrooms, in which, the assessee was carrying ....

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.... income tax had claimed 100% depreciation on temporary partitions adopting differential treatment, which is not proper? and 3. Whether the reasoning and finding of the Tribunal are proper in holding that the expenditure incurred on temporary wooden structure are allowable as revenue expenditure and not capital?" 6. The issue which falls for consideration is as to whether the Commissioner of Income Tax (Appeals) and the Tribunal were right in holding that the assessee is entitled to 100% depreciation on the interior decoration work done, as the assessee does not derive an enduring benefit nor it can be stated to be a capital asset. 7. Firstly, we wish to point out that the issue raised before this Court is a factual issue and ....

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....ture and equipment in the premises, which was leased out to the assessee and that the interior decoration works were carried out in line with the specifications of the brand, whose products were sold by the assessee as a retailer-franchisee depending upon the terms of the agreement. 11. After knowing the factual position, the Commissioner of Income Tax (Appeals) took into consideration the decisions referred above and came to a conclusion that for the interior decoration works done by the assessee in the leased premises, it cannot be stated that the assessee is deriving any enduring benefit nor it can be stated that any capital asset has been created in favour of the assessee. This factual finding was affirmed by the Tribunal in the impu....