1977 (3) TMI 50

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....s that the Appellate Assistant Commissioner erred in deleting from the assessee's income a sum of Rs. 13,994 holding it to be allowable as revenue expenditure disallowed by the Income-tax Officer as capital expenditure. The assessee a registered firm had claimed expenditure of Rs. 13,994 on account of shop repairs. The claim made was that the shop was in a very bad condition and the expenditure ha....

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....hop and the same could not be treated on capital account. Reliance was placed on decision in CIT vs. M/s. Jagat Cinema(1). It was submitted that assessee had only made minor structural chances. The floor and the roof had remained in tact. Only the walls were removed to make the shop a big hall for business purposes. The Appellate Assistant Commissioner agreed with the submissions made on behalf of....

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....e floor remained as they were. It was disputed that the assessee had dismantled this shop and reconstructed it. After hearing the parties, we are inclined to agree with the view taken by the Appellate assistant commissioner. As noted above the shop is on the ground floor of a three storeyed building and it could not have been dismantled and reconstructed as stated by the Income -tax Officer the ro....