1988 (1) TMI 67

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.... association and the association repaired the entire building. The expenses were apportioned amongst the tenants. The share of assessee in the repairs came to Rs. 33,500. The details of repairs to the portion in occupation of assessee were as follows : (i) Concrete plastering of the side walls which had become dilapidated. (ii) Plastering of the upper portion. (iii) Replacement of certain beams which had been been eaten by white ants. (iv) Repairs of a part of the flooring which had got damaged by continuous use. (v) Repairs of doors and windows. The assessee continued the business in the premises in question during the period when repairs were carried on. The assessee pleaded that amount of Rs. 33,500 represented revenue expenditure.....

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....self decisive of the question whether it is of the nature of revenue or capital. The above principle is laid down in the decision of Bombay High Court in CIT v. Oxford University Press [1977] 108 ITR 166. 4. When this principle is applied it is obvious that this case would fall in the category of a case where expenses are for preservation or maintenance of an already existing asset and not in the category of a case where as a result of expenditure a new asset or new advantage is being brought into existence. The submission of the learned departmental representative that this would be a case where new advantage is being brought into.existence because the life of the premises was extended because of the expenditure cannot be accepted. The li....