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2017 (7) TMI 817 - HC - Income TaxDepreciation claim - holding the Capital Expenditure incurred by the Assessee on leased premises as Revenue Expenditure - Held that:- This Court has observed that in order that Explanation I is attracted, it is necessary that any capital expenditure is incurred by the assessee. It is necessary to emphasise that what Explanation I brings about is a deeming fiction by which expenditure of a capital nature incurred by the assessee for the purposes stipulated therein including inter alia for the construction of any structure or the work of renovation, extension or improvement can form the basis of a claim for depreciation as if the structure or work is a building owned by the assessee. But for the Explanation, an assessee would not be entitled to the benefit of depreciation even if the expenditure which was incurred was of a capital nature and the effect of the Explanation is to entitle the assessee to the benefit of the provisions of Section 32. It is trite that explanation cannot read dehors the provision. The explanation is in aid to the provision. The expenses as are culled out in the order of the Tribunal are sufficient to imply that same are Revenue in nature and not capital. The expenses are in the nature of building maintenance charges to the society, labour charges, charges for carpenter work, plumbing work, masonry work, pending labour charges and provisional fees. Tribunal has rightly considered the expenses as Revenue in nature
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