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2013 (2) TMI 265 - AT - Income TaxExpenditure on construction/renovation of leased buildings - revenue v/s capital - Held that:- As decided in CIT Versus Madras Auto Service Pvt. Limited [1998 (8) TMI 1 - SUPREME COURT] it is essential that the expenditure incurred on the construction of any structure on the leased premises should result in saving of the revenue expenditure at the subsequent stage. In the present case, from the pleadings of both the sides, it cannot be ascertained whether the assessee is getting enduring benefit of revenue nature from the additional structure or renovation/repairs undertaken by the assessee on the leased out premises. Thus the case of the assessee very much falls within the ambit of Explanation 1 of section 32(1) held to be of capital nature - appeals of the assessee dismissed being devoid of merit. Renovation of existing shed and new electrical fittings are capital in nature & expenditure on demolition, dismantling etc. can only be allowed as revenue - partly in favour of revenue. Addition made u/s 68 on account of unexplained cash credit - CIT(A) deleted the addition - Held that:- Order of the CIT(A) shows that during the course of appellate proceedings, the assessee was able to produce documents and the details of repayment made through cheque. Even the bank confirmations were filed by the assessee showing that the cheques issued by the assessee were encashed by the respective parties. The assessee had also furnished identity of persons with complete details of addresses and the FD applications showing details. After satisfying himself with the documents, the CIT(A) has allowed the ground of appeal of the assessee. The DR could not controvert the findings of the CIT(A) on this issue, therefore no reason to interfere with the findings of the CIT(A) - against revenue.
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