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2016 (1) TMI 706 - AT - Income TaxExpenditure incurred on leased out premises - CIT(A) treated as capital in nature liable to be disallowed - Held that:- As decided in assessee’s own case for the assessment years 2005-06 and 2008-09 [2013 (2) TMI 265 - ITAT CHENNAI ] it is essential that the expenditure incurred on the construction of any structure on the leased premises should result in saving of the revenue expenditure at the subsequent stage. In the present case, from the pleadings of both the sides, it cannot be ascertained whether the assessee is getting enduring benefit of revenue nature from the additional structure or renovation/repairs undertaken by the assessee on the leased out premises. Thus, the case of the assessee very much falls within the ambit of Explanation 1 of section 32(1) of the Act. Respectfully following the said decision of the Tribunal, we uphold the order of the Commissioner of Income Tax (Appeals) in holding that expenditure incurred by the assessee on leasehold land is capital expenditure - Decided against assessee
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