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2013 (8) TMI 766 - HC - Income TaxCurrent repairs - Capital expenditure vs. Revenue expenditure – Replacement of entire marble floor was done – Allowable expenditure u/s 30 of the Income Tax Act - Held that:- Applying the tests of “current repairs” and capital expenditure to the present case the expenditure in question was a capital expenditure and even otherwise cannot be classified as “current repairs”. The earlier flooring was removed and completely replaced by marble flooring in an area of 9000 sq. ft. consisting of basement, ground floor, first and second floor. The effect thereof was that an entirely new flooring came into existence. It was not mere “repair” or “current repair”, as is understood in commercial sense or in terms of the tests specified above. The said expenditure was not necessary for maintaining or preserving the building but was done with the view to make distinct improvement and upgrade the appearance and ambience. The expenditure incurred would have entailed specific benefits and a new advantage. The word “repair” involves “renewal” of existing or replacement of a part or a supporting part and not complete replacement or reconstruction. Reliance had been placed upon the decision in the case Commissioner of Income Tax vs. Modi Industries Ltd. [2010 (9) TMI 162 - DELHI HIGH COURT] apart from various other decisions – In the instant case, the assessee has in fact averred that enduring benefit has accrued to him as it would help in long term since the foreign clients visit his factory/ office. A new asset of enduring benefit in form of completely new flooring of marble, different and distinct from the earlier flooring, has come into existence – Decided against the Assessee.
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