1979 (8) TMI 60

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..... V. GUPTA J.--The facts giving rise to this reference are these: The assessee is a registered firm. The assessment relates to the year 1969-70, for which the accounting year ended on 31st March, 1969. The assessee purchased a cinema in 1958 for a sum of Rs. 1,62,000. At the time of its purchase, the cinema building was an old one. The assessee carried on exhibition business in this cinema buildin....

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....0 from the assessment. The revenue feeling aggrieved against this order, went up in appeal before the Tribunal, which dismissed the same with the following observations: " The assessee carried out only urgent repairs to the ceiling and that too after the Executive Engineer's visit to their building on 15th July, 1968. If the assessee had not carried out the repairs to the ceiling and certain ot....

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....reat magnitude carried out for giving an enduring advantage to the assessee, and, therefore, the expenditure being with the sole object of getting an enduring benefit for the business, must be deemed to be in the nature of a capital expenditure. In support of his contention, he relied upon Sri Rama Talkies v. CIT [1966] 59 ITR 63 (AP). On the other hand, the learned counsel for the assessee, co....

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....hra Pradesh High Court in Hylam's case [1973] 87 ITR 310, in order to determine whether an expenditure incurred by the assessee in any year is or is not an expenditure of revenue nature. One of the tests laid down therein is, if the expenditure is for the initial outlay or for acquiring or bringing into existence an asset or advantage of an enduring benefit to the business that is being carried on....