1978 (11) TMI 47

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....ee is a private limited company. Its main business is taking house property on lease, repairing, altering and remodelling it and then letting it out to tenants. During the assessment years 1969-70, 1970-71 and 1971-72, the assessee claimed depreciation on the capital expenditure for improving the buildings. The expenditure was claimed for construction of partion walls, fitting tiles in some portio....

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....laim was allowed. At the instance of the Commissioner, the Tribunal has referred the following question of law for our opinion: " Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in allowing depreciation on the capital expenditure incurred by the assessee in making improvements to the property taken on lease in the assessment years 1969-70 to 1971-....

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....he duration of the lease, which was for a fixed period of ten years, the assessee was in fact and in law the owner of the improvements of permanent nature effected by the assessee. The purpose for effecting improvements was to earn a better return from the property. It was a business investment in the shape of making permanent improvements in the buildings. The assessee was, in the eye of law, the....