TMI Blog1993 (8) TMI 140X X X X Extracts X X X X X X X X Extracts X X X X ..... , it is prayed that the order of the CIT (Appeals) should be cancelled and that the order of the Assessing Officer sustained. 2. The relevant facts, as seen from the record, are that the assessee is a registered firm carrying on the business of match factory. The assessment year involved is 1980-81 for which the accounting year ended on 12-4-1980. The original assessment was completed under section 143(3) on 22-4-1981 on a total income of Rs. 79,070 after disallowing Rs. 5,000 out of the expenses relating to travelling and building repairs on agreed basis. However, the assessment was reopened under section 147(b) read with section 148 on 5-3-1985 and the reassessment was completed under section 148 read with section 143(3) on 28-11-1986 w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... [1982] 133 ITR 559. 3. On appeal, the assessee highlighted a portion of the expired rental agreement dated 30-6-1954 to the effect that after the expiry of 10 years, i.e., on 30-6-1964, the assessee should hand over the vacant land, compound, and new structures raised by the assessee to the landlord. Reliance was also placed on the judgment of the Madras High Court in the case of CIT v. Kisenchand Chellaram (India) (P.) Ltd. [1981] 130 ITR 385. 4. The CIT (Appeals) held that no benefit accrued to the assessee since the land, building, to which improvements were effected, belonged to the lessor and the mere fact that the amount expended was heavy would not make the expenditure otherwise than revenue. He also observed that the rent paid w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing was to be repaired for which the tenant has to incur expenditure to the extent of Rs. 5,000 and the accounts thereof should be submitted by the tenant to the landlord for getting it approved by him. There was also stipulation that Rs. 50 per month is to be adjusted by the tenant towards recovery of the expenditure of Rs. 5,000 incurred by the tenant and only the balance of Rs. 50 was to be remitted to the landlord. Further, there was also stipulation that if the expenditure is more than Rs. 5,000 that has to be incurred by the tenant of his own accord. The advance of Rs. 1,200 taken by the landlord from the tenant was to be adjusted out of the rent payable at the rate of Rs. 100 per month. There was also stipulation to share equally the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nefit of the expenditure over a reasonable length of time. Therefore, the concept of enduring benefit was held to be not applicable. This decision is not at all applicable to the facts of the present case. Therefore, there is no force in the conclusion drawn by the CIT (Appeals) by relying on the aforesaid judgment. 8. Coming to the decision in the case of S. Zoraster Co., relied upon by the Assessing Officer, it is revealing that a catena of case laws has been considered which have different shades and colour depending upon the peculiar facts and circumstances of those cases. In the case of S. Zoraster Co., the assessee carried on the business of running a picutre house known as " Prem Prakash Talkies " and it carried out renovation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plying the aforesaid test and the principles of the case laws dealt with by the Rajasthan High Court in S. Zoraster Co.'s case and considering the vital fact that the rental agreement itself specified that the tenant was bound to construct new buildings according to the rules of the Government for purpose of carrying on match factory business, the cost of construction of such new structure was to be recovered from the landlord out of the rent payable by the tenant by adjusting 50% of the monthly rent payable. In other words, instead of the landlord constructing the new building according to the rules of the authorities for ensuring safety and security for the purpose of carrying on match factory business, which involves use of explosive m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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