TMI Blog1978 (10) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... f the lease the property was in disrepair and therefore the assessee incurred an expenditure of Rs. 29,731 for repairing the building. Afterwards the assessee leased the property to one Mr. Balakrishna Kathare, who was the Director of India Chemicals Agencies Pvt. Ltd., for a monthly rent of Rs. 1,000. It was further submitted that for effecting the above repairs the firm had borrowed Rs. 19,000 form India Chemicals Agencies Pvt. Ltd. Which was recoverable from the lease amount payable to the assessee. The assessee's claim before the ITOr was contained in the letter dated 11th Feb., 1976 submitted before the ITOr. It was followed up by another letter dated 16th Feb., 1976 along with the statement giving the particulars of the expenses aggre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he repairs would fall under 'current repairs' under s. 30 of the Act and the same should have been allowed. He also drew our attention to the fact that the expenditure claimed in regard to electric installations and other items would clearly show that the same was incurred only by way of repair and not by way of construction of additional building. It was further pointed out that the premises were near the railway line and due to the constant rail-traffic and the consequent vibration the walls required support and a part of the expenditure was incurred for the purpose. He relied upon the ruling of the Allahabad High Court in the case of Girdhari Dass and Sons vs. Commissioner of Income-tax(1), in support of his stand. On behalf of the Reven ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... terials from Ratna Electricals(Wire PVC conduits, switches, metres, etc.) Rs. 2,712-83 Labour for white washing portions paints remuneration to K. Srinivasan Rs. 778-94 Carpentary labour Rs. 130-00 Electricity connection charges minimum charges paid to Electricity Board Rs. 3,802-90 Construction of brick masonary walls in partition and for strengthening Rs. 9,914-00 Replacing damaged portions Rs. 3,718-00 Resetting sunshades, fol slabs, beam Rs. 1,089-00 Replacing grill gates with roller shutters Rs. 1,000-00 Construction of bigger overhead tank and repairing of sanitary and water supply constructions Rs. 4,386-00 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to repairs. The ruling of the Allahabad High Court in Girdhari Dass and Sons vs. CIT(1), cited by the learned counsel for the assessee clearly supports the assessee's stand. Their Lordships have laid down the test to be applied to find out whether an asset or advantage of enduring nature has come into existence at page 342 as under: "The first and the most commonly applied test is to see whether the expenditure brings into existence asset or advantage of enduring nature. When a person constructs or purchases a building, he acquired an asset and the expenditure on such acquisition or construction would be a capital expenditure. Similarly when he incurs expenditure on addition or alteration in a building which enhances its value, the exp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee might have made some structural changes also do not create a capital asset or bring into existence an advantage of enduring nature. The assessee must have made structural changes to make the shop more useful for purposes of its business. There is no finding that the lease in favour of the assessee was perpetual lease so that the advantage acquired by him by structural changes could be said to be of enduring nature." In the instant case the assessee was admittedly not the owner but only the lessee. The principles laid down in the above decision would squarely apply to this case. In these circumstances we are of the opinion that the expenditure claimed is revenue in nature and we direct that the same should be allowed. In the result the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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