TMI Blog2018 (6) TMI 1815X X X X Extracts X X X X X X X X Extracts X X X X ..... a Enterprises [ 2011 (11) TMI 4 - DELHI HIGH COURT ] held that in respect of the premises expenses which are incurred by the assessee on flooring, partition, wiring, fall ceiling, roofing, Air conditioner unit and duct, electrical wiring, laying network for setting up computer and for purchase of computer the same are in the nature of Revenue expenditure. The Hon ble High Court has given the finding that whether an expenditure incurred is made on Revenue account or otherwise one would have to bear in mind the nature of the expenditure that is was it incurred for maintenance or preservation of an asset or was it expanded otherwise. If the expenditure was of the formal kind it would be in the nature of Revenue expenditure. In the light of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e claim of the assessee of allowing depreciation u/s 32 of the Act on actual cost of assets taken on finance lease. 3. That the CIT(A) has grossly erred in facts and law by upholding the order of the AO, in disallowing the revenue expenditure incurred on leasehold improvements amounting to Rs. 33,55,000/- during the previous year under consideration treating the same to be capital in nature. 3.1Without prejudice to the above ground, the CIT(A) has erred in facts of the case and in law in upholding order of the AO to the extent that the AO even failed to allow depreciation on expenditure incurred on leasehold improvement while computing the assessed income. The above grounds are mutually exclusive and without prejudice to each other ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onse to the above questionnaire, the assessee filed all the details in its time to time submissions. In these submissions, the assessee provided requisite information as well as detailed explanations on various queries raised during the course of assessment proceedings. Subsequently, the Assessing Officer passed the assessment order u/s 143(3) of the Act on 23.12.2011. In the said assessment order, following additions/disallowances have been made to the returned income: Principal payments towards finance lease amounting to Rs. 17,66,631/- Leasehold improvements amounting to Rs. 33,55,000/- 4. Being aggrieved by the assessment order the assessee filed appeal before the CIT(A). The CIT(A) dismissed the appeal of the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... year the assessee incurred expenditure of Rs. 33,55,000/- on lease hold improvements these were in the nature of temporary structures, wooden partition etc. to be erected in the rented premises of the assessee. The above premises were occupied by the assessee for the purpose of its business. As per the lease and license agreements, the assessee is required to keep the interior walls, floors, ceiling, doors, windows, electrical fittings and installation and water connection in good order and condition and make good any damage and replace any damage or broken or missing articles electric fixtures or fittings. The Ld. AR further submitted that the assessee is required to provide at its own cost on going up keep, repairs and maintenance of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lates to second issue i.e. Ground No. 3 and 3.1, the decision of the Hon ble Delhi High Court in the case of CIT vs. Amway India Enterprises (2012) 346 ITR 341 held that in respect of the premises expenses which are incurred by the assessee on flooring, partition, wiring, fall ceiling, roofing, Air conditioner unit and duct, electrical wiring, laying network for setting up computer and for purchase of computer the same are in the nature of Revenue expenditure. The Hon ble High Court has given the finding that whether an expenditure incurred is made on Revenue account or otherwise one would have to bear in mind the nature of the expenditure that is was it incurred for maintenance or preservation of an asset or was it expanded otherwise. If t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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