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2014 (4) TMI 393 - AT - Income TaxAllowability of depreciation @10% on certain items as against 100% claimed by the assessee - nature of expenditure on Civil work, flooring work, and finishing work, etc incurred by assessee as tenant - Held that:- If the expenditure were to be considered as capital expenditure in the hands of the owner, it has to be considered as capital expenditure in the hands of the tenant, who is the assessee so far depreciation and other benefits are concerned - if the expenditure has to be treated as revenue expenditure in the hands of the owner, it would amount to revenue expenditure even in the hands of the assessee tenant - In no uncertain terms that the capital expenditure incurred, whether by the owner on his premises or by a nonowner on the premises taken on rent or lease etc. for carrying on his business, shall not be allowed as deduction in full in the year of its incurring, but will be capitalized entitling it to depreciation – the expenditure incurred by the assessee on `Civil work, flooring work, and finishing work, etc,’, the same does not pass the test of revenue expenditure to be deductible in full - the amount has been rightly capitalized by the AO as well as CIT(A) making the assessee eligible for depreciation on it – Decided against Assessee.
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