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2016 (11) TMI 1597 - AT - Income TaxRenovation expenditure - Allowable Revenue expenditure - expenditure incurred by the assessee in replacing the mosaic floor by marble floor - Held that:- It appears that the hotel run by the assessee was classified as four star hotel since 1971. Therefore, the assessee has to necessarily have Air Conditioner Machine, Dishwash Machine and Audio Video in Resto Pub. This Tribunal is of the considered opinion that in the absence of any material to suggest that the assessee has purchased any new machinery, it has to be considered only as replacement of the existing machinery. When we consider the hotel as a single unit, replacement of Air Conditioner Machine, Dishwash Machine and Audio Video in Resto Pub has to be considered as maintenance of the building for the purpose of running the business of hotel. Therefore, the CIT(A) has rightly found that the expenditure was revenue in nature. - decided against revenue.
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