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2011 (7) TMI 776 - AT - Income TaxExpenditure on renovation of rented building - Capital or revenue expenditure - Assessing Officer noticed that the assessee has incurred a sum of ₹ 40,25,442.26 towards renovation of premises taken on lease - Revised return - The effect of sub-section (1A) or Explanation 1 to section 32 is that the assessee is entitled to depreciation on any capital expenditure incurred by him for the purpose of business or profession on the construction of any structure or doing of any work or in relation to and by way of renovation or extension of or improvement to the building, even if the building is not owned by the assessee - It is pertinent to note that the provision relating to allowing depreciation on the capital expenditure incurred on lease hold building is available in the Act since the assessment year 1971-72 onwards - Held that: the question whether the expenditure incurred on the rented or lease hold premises is in the nature of capital or revenue has to be examined independently under the facts and circumstances of each case - Appeal is allowed by way of remand to CIT(A)
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