1985 (2) TMI 74

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....s incurred on repairs. Particulars of expenditure incurred and that which was disallowed by the ITO as capital in each of the year are as under: Asst. Yr. Expenditure Claimed Expenditure disallowed by the ITO 1978-79 Rs. 39,850 Rs. 19,000 1979-80 Rs. 85,730 Rs. 45,000 1980-81 Rs. 12,383 Rs. 4,000 In the asst. yr. 1981-82, Rs. 11,455 was incurred and that amount was allowed in full. Thus in all the expenditure incurred was about Rs. 1.5 lakhs and the allowance made by the ITO was about Rs. 80,000 i.e., upto and including the asst. yr. 1981-82. We have narrated the aforesaid facts including the particulars gathered at the hearing. 3. According to the ITO the amounts spent in each year were large and a....

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....lding in the existing condition and to enable the assessee to continue to occupy it for business premises and, therefore, the expenditure was revenue in nature. 5. The ld. Departmental Representative, on the other hand, submitted the RCC work had been done, which clearly prolonged the life of the building, and an asset of enduring benefit thus came into existence. Disallowance of a portion of the expenditure as capital, it was stated, was hence in order. 6. We have considered the rival submissions. The notice given by the Corporation of Bombay indicates the extent of repair work that was considered essential. The repairs, which were required to be done, were quite extensive. At times, when repair word is done reinforcement has to be m....