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2021 (2) TMI 543 - AT - Income TaxNature of expenditure incurred on building taken on lease - expenses of Repairs & Maintenance debited to Profit & Loss Account - revenue or capital expenditure - HELD THAT:- The issue is duly covered by the assessee’s own case titled as CIT Vs. Shree Nirmal Commercial Ltd. [1994 (4) TMI 19 - BOMBAY HIGH COURT] which speaks that the income of the assessee should be treated as business income. No doubt in the said circumstances, the expenses are liable to be allowed as revenue expense. In the previous and subsequent year, the claim of the assessee has been accepted by the revenue as revenue expenses. The claim of the assessee is liable to be accepted on the basis of consistency also. Moreover, there is no plausible reason given by the AO as well as CIT(A) in which it can be assumed that the nature of the expenses has been changed. Anyhow, in view of the above said facts and circumstances, it is quite clear that the assessee is not the owner of the building he is only lease-holder, hence, expenses are not liable to be capitalized - claim of the assessee has been accepted in the previous and subsequent year also, therefore, in the said circumstances, the finding of the CIT(A) is not justifiable, hence is liable to be set aside. We ordered accordingly and the claim of the assessee is hereby allowed.
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