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2024 (2) TMI 1041 - AT - Income TaxNature of expenses - treatment of repair & maintenance and store and space expenses - whether such expenditure is capital or revenue? - Test of enduring benefit - assessee is required to demonstrate that the expenses have been claimed for a routine up keep of building and plant & machinery - contention of the assessee is that the expenditure was incurred to maintain the upkeep of the existing assets and no new asset came into existence by such repairs HELD THAT:- Looking to the nature of expenditure made by the assessee it is seen that there are replacement of the entire components and laying of roads etc. Therefore, in our considered view the AO ought to have verified the correctness of the claim that it is purely for the routine upkeep of building and plant & machinery and not for major repairs which brought enduring benefit to the assessee. Thus, in the absence of clear finding about the nature and extent of repairs treating the expenditure as capital is not justified. However, it is clarified that in respect of repairs made on road, such expenditure would be allowable since the assessee is not the owner of roads, outside its premises. We, therefore, set aside the impugned order and restore the issue to the file of AO for verification of the correctness of the claim of the assessee. Ground is allowed for statistical purpose.
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