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| The Tax Publishers2020 TaxPub(DT) 4200 (Cal-HC) INCOME TAX ACT, 1961
Section 37(1)
Renovation expenses incurred on leased building is capital in nature.
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Capital or revenue expenditure - Renovation expenses - Assessee being a lessee -
Issue under consideration as to whether Tribunal had erred in deleting the addition made by AO on account of renovation expenses treating the same as capital expenditure as the assessee was in the business of hotels. Held: It would appear from the case of assessee itself that written down cost of building renovated was claimed to have been made by assessee for addition to building leased out to it. Amount spent by assessee in making additions and alterations is a capital expenditure.
Followed:CIT v. Madras Auto Service (P.) Ltd. (1998) 99 Taxman 575 (SC) : (1998) 233 ITR 468 (SC) : 1998 TaxPub(DT) 1407 (SC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2001-02
IN THE CALCUTTA HIGH COURT
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