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2014 (8) TMI 641 - HC - Income TaxNature of expenses – Capital or revenue – Renovation expenses on modification of showroom – Compulsory continuation of dealership agreement – Held that:- Any expenditure incurred by the assessee towards repairing the premises taken on rent if he has undertaken to bear the cost of the repairs so as to make it more conducive to its business activity falls within the expression 'repairs to the premises' and the cost of such repairs is allowable as deduction under the provision – Relying upon THE COMMISSIONER OF INCOME TAX, DELHI-IV. Versus M/s HI LINE PENS PVT. LTD. [2008 (9) TMI 25 - HIGH COURT DELHI] - expenses that were incurred were towards repairing the premises taken on lease so as to make it more conducive to its business activity - Such expenses would clearly fall within the expression of repairs to the premises as appearing in Section 30(a)(i) - The legislature has made a distinction between expenses incurred by a tenant for “repairs” of the premises and expenses incurred by a person who is not a tenant towards “current repairs” to the premises – Decided in favour of Assessee.
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