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2016 (5) TMI 1271 - HC - Income TaxAllowability as revenue expenditure - payment made by the appellant to the landlord for his consent to the reconstruction of the building - whether was a revenue expenditure to be allowed as a deduction on proportionate basis over a period of 11 years? - Held that:- Revenue, did not dispute that the payment was made by the assessee in consideration of the landlord agreeing to signify his consent to the reconstruction of the building which had been demolished by fire. The expenditure was made so that the assessee was able to carry on its business. Following the view expressed in the case of Bikaner Gypsums Ltd. –vs- Commissioner of Income Tax [1990 (10) TMI 2 - SUPREME Court ] , we are inclined to hold that this was a revenue expenditure. The assessee, though has claimed it on a deferred basis, the claim should be allowed as prayed for. - Decided in favour of assessee.
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