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2015 (3) TMI 1120 - AT - Income TaxDepreciation towards temporary structures in leased premises - CIT(A) restricted claim to 10% as against 100% claimed by the assessee - Held that:- The assessee has incurred an expenditure towards refurbishing the leased out premises by incurring expenditure on wooden partitions, false ceiling, ESD tiled floorings, electrical network cabling and interior decoration etc. There is no doubt that the assessee would derive benefit from these structures year after year and therefore, the benefit derived is of enduring nature. From the lease deed of the assessee with its landlord, it is evident that the lease is for a period of nine years which can be further extended by mutual consultation. It is also evident that the asset leased out by the assessee is of commercial nature and intention of the landlord is to let out the premises on long term basis. Therefore, from the facts and circumstances of the case, it is evident that the assessee would derive benefit from these structures at least for a period of nine years or even more. These structures also remains as the property of the assessee and on vacating the premises, the assessee is entitled to either remove these structures, or sell it to the new tenant. As pointed out by the Ld. CIT (A), Explanation-1 to Section 32 clearly clarifies the issue, though it has been inserted by the Taxation Laws (Amendment and Miscellaneous Provisions) Act, 1986 with effect from 01.04.1988. In the present case before us, it is not the repair work that was carried on but creation of an asset itself by incurring an whooping expenditure of. Considering the facts of the present case before us, and based on our above discussions, we do not find it necessary to interfere with the elaborate and speaking decision rendered by the Ld. CIT (A). Accordingly, the issued is decided in favour of the Revenue. Needless to mention, that all the decisions cited by the Ld. A.R, are distinguishable from the facts of the present case before us. - Decided against assessee
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