TaxTMI 
TaxTMI 
2019 (1) TMI 753
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....'B' Bench, Chennai, dated 23.11.2016 in I.T.A.Nos.576 and 577/Mds/2016 for the assessment years 2006-07 and 2012-13 respectively. 2.T.C.A.No.594 of 2018 has been filed raising the following substantial questions of law:- "(i) Whether on the facts and in the circumstances of the case, the order of the Tribunal is not perverse on facts. (ii) Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that relaying of marble flooring in the place of mosaic flooring is the revenue expenditure." 3.T.C.A.No.595 of 2018 has been filed raising the following substantial questions of law:- "(i) Whether on the facts and in the circumstances of the case, the order of the Tribunal....
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....ior Standing Counsel for the appellant and Ms.K.C.Neelayadakshi, learned counsel appearing for Mr.Sandeep Bagmar, learned counsel for the respondent. 6.The assessee, running a four star hotel in the city of Chennai, had incurred expenditure for re-place of flooring and purchase of air conditioner, dish washing machine, and audio/video equipments in the pub etc. The question was whether these expenditures should be treated as 'capital' or 'revenue'. 7.We are guided by the decision of the Hon'ble Division Bench of this Court in the case of Commissioner of Income-tax vs. Dasaprakash, [1978] 114 ITR 210 (Mad.). In the said case, the assessee-firm was running a hotel and it incurred expenditure for putting decorated mir....
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....f the Act. 9.In CIT vs. Ooty Dasaprakash, [1999] 237 ITR 902 (Mad.), the expenditure incurred was for repairs and modernising the hotel by replacing the existing components of the building, furniture and fittings. The Hon'ble Division Bench of this Court, after taking note of the decision in the case of Dasaprakash (supra), held that the expenditure was incurred solely for repairs and modernising the hotel and replacing the existing components of the building, furniture and fittings, with a view to create a conducive and beautiful atmosphere for the purpose of running the business of a hotel. Accordingly, held that the expenditure would fall under the category of 'revenue expenditure' and to be allowed as a deduction under Se....
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....t to point out that the Hon'ble Apex Court in Assam Bengal Cement Co. Ltd. vs. CIT, [1955] 27 ITR 34, explained as to how to determine whether the expenditure was capital or revenue. It held that the aim and object of the expenditure would determine the character, namely, whether it was capital expenditure or revenue expenditure. If the expenditure was made for acquiring or bringing into existence an asset or advantage for the enduring benefit of the business, it was properly attributable to capital and was of the nature of capital expenditure. If, on the other hand, it was made for running the business or working it with a view to produce profits, it was revenue expenditure. 13.The learned Senior Standing Counsel for the Revenue pla....