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2021 (11) TMI 1111 - HC - Income TaxNature of expenditure - Expenditure on construction of building - whether leasehold premises would amount to revenue expenditure contrary to the clear provisions of Explanation 1 to Section 32(1)? - HELD THAT:- As decided in case Viswams [2019 (4) TMI 1127 - MADRAS HIGH COURT]. Assesses had incurred substantial expenditure towards renovation leading to enduring benefit. They are not merely repairs. Assessee had also incurred expenditures towards improvement and construction of the building. These cannot be termed as 'repairs'. Consequently, this alternate submission is rejected by us. The second alternate submission advanced by Mr.M.P.Senthil Kumar that the case should be remitted back to the AO is also rejected since the fact have been addressed and settled by the Authorities below and it had been concurrently found that the expenditure were capital in nature. The issue of bifurcating the said expenses as capital and revenue would therefore not arise. We hold that the substantial questions of law have to be answered in favour of the Revenue and against the Assessee and the Appeals filed by the Revenue have to be allowed. Accordingly, the Appeals are allowed.
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