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2016 (12) TMI 404 - AT - Income TaxExpenditure under the head “Repairs & Maintenance” - revenue v/s capital expenditure - Held that:- For the proposition that merely because the expenditure has been incurred on a new leased premises, it does not mean that the same amounts to capital expenditure and different treatment should be given. The assessee is into the business of setting up and running cinema theatres and in the earlier years, the assessee has carried out similar activities which has been considered by the AO as capital expenditure. ITAT has considered the factual and legal matrix of the case and has held the expenditure to be revenue expenditure. The decisions relied upon by the learned Counsel for the assessee also supported the case of the assessee - Decided in favour of assessee. Registration charges for lease deed - revenue v/s capital expenditure - Held that:- In the case of Gopal Associates (2008 (8) TMI 530 - HIMACHAL PRADESH) considering the nature of the incurred expenditure on stamp duty and registration charges at the time of execution of lease agreement for taking of land on lease for Fruit Processing Plant for 7 years and the Hon'ble High Court has held it to be in the nature of revenue expenditure. The above decisions, therefore, clearly hold that the expenditure incurred towards registration charges of leave and licence agreement is in the nature of the revenue expenditure and has to be allowed in the year of execution of the leave and licence agreement. - Decided in favour of assessee Additional depreciation u/s 32(1)(iia) - Held that:- In the case before us, the claim of the assessee is that it is running a canteen in the Cinema Theatre and therefore, is manufacturing food items and hence is eligible for additional depreciation u/s 32(1)(iia) of the Act. Running a canteen cannot be said to be manufacturing of an article or thing. Therefore, the claim of the assessee is not tenable. - Decided against assessee
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