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2015 (10) TMI 1277 - AT - Income TaxDisallowance of Lease hold Land Expenses - Held that:- In the instant case, it is an admitted fact that the assessee has taken land on lease for setting up of project for processing of coir. It is also undisputed that the assessee has constructed the building at the leased premises. Thus the assessee has constructed super structure. These construction activities carried out by the assessee if put on to the test of Explanation 1 would show that the construction made by the assessee on the leased out premises would amount to capital expenditure. It is essential that the expenditure incurred on the construction of any structure on the leased premises should result in enduring benefit. In our considered opinion, the case of the assessee very much falls within the ambit of Explanation 1 of section 32(1) of the Act and in view of Supreme Court judgment in the case of Madras Auto Service [1998 (8) TMI 1 - SUPREME Court] we are not considering the various judgments cited by the Ld. AR. In view of the above, we find no merit in the arguments of the assessee's counsel on this issue - Decided against assessee.
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