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2023 (2) TMI 841 - AT - Income TaxNature of expenses - repairs and maintenance expenses - revenue or capital expenditure - whether there was no enduring benefit emerging out of the said expenditure? - HELD THAT:- It is an admitted fact that assessee has purchased adjacent factory shed. After purchasing the factory, the assessee carried out renovation and repairs. On going through the list of expenses and vouchers submitted by the ld.AR in the paper book, it is observed that assessee has carried out flooring work i.e. assessee changed the flooring of the factory shed. It has also carried out plumbing work, painting work. It has also carried out the renovation of the compound wall. It is not the claim of the AO that a new asset has been created. It is a fact that there was an existing factory shed. The assessee has merely renovated it to suit for his purposes. By doing so, no new asset has been created. It was merely repairs of the existing asset to make it suitable for the purposes of the assessee. As relying on Oxford University Press case [1975 (7) TMI 19 - BOMBAY HIGH COURT] the expenditure incurred on repairs and renovation was revenue in nature and hence, allowable as revenue expenditure. Accordingly, grounds of appeal raised by the assessee are allowed.
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