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2017 (8) TMI 410 - AT - Income TaxNature of expenditure - revenue or capital - purchase of kitchen exhaust system of assessee’s hotel - Held that:- The use of the Centrifugal Blower & 15 HP Motor is a part and parcel of the kitchen exhaust system. It has been explained that the expenditure has been incurred with the objective of maintaining existing kitchen exhaust system. Therefore, under these facts the expenditure is to be viewed in the nature of repairs and renovation of a pre-existing business and not for acquisition of an independent capital asset. In this view of the matter, we set-aside the order of the CIT(A) and direct the Assessing Officer to allow the said expenditure as revenue expenditure. Thus, on this aspect assessee succeeds.
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