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2017 (3) TMI 1222 - AT - Income TaxDisallowing 100% of repairs & maintenance expenditure of buildings and plant & machinery - Held that:- Treatment of assessee’s repair claims pertaining to its hotel building and plant & machinery. Both the lower authorities except to the extent of minor fraction in lower appellate order hold the same as capital expenditure. It emerges that this tribunal’s co-ordinate benches in assessment years 2005-06 to 2007-08 have already decided the very issue in assessee’s favour. The factual position however is different in succeeding assessment years wherein the assessee has itself treated 65% of the above heads of expenses as capital expenditure and 35% to be Revenue expenditure as per its authorized person’s survey statement operative from the impugned assessment year. The assessee’s sole endeavor accordingly before us is to claim only 35% of the expenditure as revenue and balance 65% to be capital expenditure as per its above survey statement. Learned Departmental Representative appearing at Revenue’s behest fails to dispute all the above-stated survey developments as well as treatment of the very head of expenditure as revenue in nature in preceding assessment years and partly capital and partly revenue expenditure in latter assessment years. We therefore accept assessee’s limited contention and direct the Assessing Officer to treat 65% of the impugned claims as capital expenditure entitled for depreciation and balance 35% as revenue expenditure. He shall accordingly frame consequential assessment as per law.
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