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2016 (9) TMI 956 - AT - Income TaxDisallowance of expenditure incurred on repairs and maintenance in the lease hold premises - revenue or capital expenditure - Held that:- Admittedly, in the present case, the assessee has laid new floor on the leased asset of the company, for which it has purchased tiles for this purpose and by claiming the same as revenue expenditure, debited an amount of ₹.27,09,957/- under the head ‘building maintenance’. However, the Assessing Officer treated the same as capital expenditure and addition made was further confirmed by the ld. CIT(A). On similar facts and circumstances, the Hon’ble Jurisdictional High Court in the case of CIT v. Ayesha Hospitals (P) Ltd. (2006 (10) TMI 117 - MADRAS High Court) has observed that the expenditure incurred by the assessee on painting, relaying of damaged floors, partitions, etc. in leasehold premises is allowable as revenue expenditure and relevant portion of the order is reproduced hereinabove. Respectfully following the above decision of the Hon’ble Jurisdictional High Court, we direct the Assessing Officer to delete the addition made on this account - Decided in favour of assessee.
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