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2014 (1) TMI 887 - AT - Income TaxNature of Expenses – Revenue or Capital - Deduction claimed on expenditure - Expenses incurred on renovation of office premises – Held that:- The Act draws no distinction between the capital expenditure incurred in relation to the user's own building or that in respect of which he enjoys leasehold or the other right of occupancy, i.e., for the purpose of grant of depreciation thereunder - Relying upon CIT vs. Madras Auto Service (P.) Ltd [1998 (8) TMI 1 - SUPREME Court] - It would be proper to allow the assessee a final opportunity to present its case with regard to the relevant expenditure as being not capital expenditure but of revenue nature, i.e., as not falling with the scope and ambit of Explanation 1 to s. 32(1), before the AO - The CIT(A) having already allowed depreciation, i.e., on merits, which has not been contested by the Revenue, the assessee's claim with reference to its revised computation stands admitted for being considered – Decided in favour of Assessee.
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