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2017 (3) TMI 892 - HC - Income TaxExpenditure incurred towards temporary structure on leased business premises - capital or revenue expenditure - Held that:- None of the authorities below have examined in detail the nature of the expenses. The authorities below have adverted to, broad heads while rendering their respective decisions in the matter. To give an example, the details submitted by SRP along with their invoice dated 01.06.2007 would show that there are expendses incurred, towards painting of walls, supply and fixing of covin cum capping, light fittings, etc.; which, to our minds, prima facie, appear to be in the nature of revenue expenditure. The authorities below, as indicated hereinabove, have not examined, in our view, the expenditure incurred under each sub-head minutely so as to ascertain as to whether or not they would fall under the category of capital expenditure. Furthermore, as correctly pointed out by the learned counsel for the assessee, a Division Bench of this Court in Thiru Arooran Sugars Ltd. vs. Deputy Commissioner of Income-Tax, (2013 (2) TMI 450 - Madras High Court ), has held that temporary structures such as false ceiling, could not be categorised as a capital expenditure.As a matter of fact, in that particular case, deduction was claimed qua expenditure incurred on re-laying of damaged floors, painting and setting up partitions in a leased property. Therefore, to our minds, the authorities below ought to have carefully examined each sub-head of the expenditure incurred by the assessee and then, come to the conclusion whether or not they ought to categorise the expense as capital expenditure, keeping in mind, the facts obtaining in the present case and the case law on the point. We are, thus, of the view that for the foregoing reasons, the impugned order would have to be set aside with the direction to remit the matter to the Assessing Officer for a de novo assessment.
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