2002 (5) TMI 25

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... JAWAHAR LAL GUPTA J.-The Revenue has filed his appeal under section 260A of the Income-tax Act, 1961. It maintains that the following two questions of law arise: "(i) On the facts and in the circumstances of the case and in view of the detailed findings of the Assessing Officer, whether the Tribunal was justified in law in treating the expenditure on extensive renovation and extension resul....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....or any long and enduring benefit ... obtained by the assessee ... The expenses incurred ... were in the nature of current repairs." Thus, the expenditure claimed by the assessee was allowed as a deduction. Mr. Sawhney contends that two new bathrooms and a kitchen had been constructed. This was clearly a capital expenditure. So far as this matter is concerned, a perusal of the order of the Tribu....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....a former state (as of freshness, soundness, purity or newness of appearance)". The process of renovation involves expense. But it does not mean acquisition of a new asset. The amounts spent on renovation cannot be the sole measure for deciding the nature of expense. Various relevant factors have to be taken into account. The basic test is--Has a new asset come into being? This is admittedly not so....