TaxTMI 
TaxTMI 
2021 (11) TMI 1111
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....ated 28.04.2009, this court admitted the aforesaid tax case appeal on the following substantial question of law: "Whether in the facts and circumstances of the case, the Tribunal was right in holding that expenditure on construction of building in a leasehold premises would amount to revenue expenditure, contrary to the clear provisions of Explanation 1 to Section 32(1) of the Income Tax Act?" 3.When the matter was taken up for consideration, the learned senior standing counsel appearing for the appellant / Revenue submitted that the issue raised in this appeal is squarely covered by the judgment of this Court in Commissioner of Income Tax, Madurai -vs- Viswams [[2019] 105 taxmann.com 289 (Madras)], where identical question was decided a....
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....onsider the said Explanation. The other Judgement relied on by the learned counsel in TVS Lean Logistics Ltd., cited supra related to totally distinguishable set of facts. In that case, the Assessee had put up construction of a building on a lease hold land. The building was not taken on lease. Consequently, it was held as follows:- "4.1. It is not in dispute that the assessee had put up the impugned construction of building only on the leasehold land and no building was taken on lease by the assessee. Therefore, the fiction created by Expln. 1 that the building put up by him in the leasehold land or structure or work shall be construed as if the same is owned by the assessee, is not applicable to the case of the assessee and the Expln. 1....
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...., and therefore, it can be safely said that the lessee brought into being an asset of an enduring nature. Undoubtedly, it was an improvement. The wooden chairs were replaced. No evidence had been led to show that the wooden chairs had been useless and could not be used for seating the cinema-goers. On the other hand, the stand taken was that the whole object was to modernise the cinema house to bring it in line with the modern show business. The replacement was an improvement of an enduring nature and not mere replacement. Capital expense with regard to a short-term venture, such as a lease for a period, had to be viewed in the context of that lease, namely, its purpose coupled with its duration. Expenditure incurred by the assessee is an e....