TMI Blog2010 (9) TMI 156X X X X Extracts X X X X X X X X Extracts X X X X ..... sh Ahlawat, Adv. DIPAK MISRA, CJ. The present appeal preferred under Section 260A of the Income Tax Act (for brevity "the Act") against the order dated 22nd December, 2009 passed by the Income Tax Appellate Tribunal, Delhi Bench "F" Delhi (for short „the tribunal‟) in ITA No.3704/Del/2009 pertaining to the assessment years 2003-04 was admitted on the following substantial question of law:- 1. Whether the expenses incurred by the assessee towards errection of boundary walls, construction of tanks, construction of roads etc. under the nomenclature Maintenance of market yard (Civil) and Maintenance of market yard (Electric) are to be treated as Capital or Revenue? 2. At the very outset, we may note that in the memorandum of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was not justified in disallowing part of the expenses incurred on the maintenance of market yard (civil) being capital in nature whereas the assessee had debited the same in the Income Expenditure account as the expenses were revenue in nature and were recurring expenses; that the first appellate authority was not correct in disallowing part of the expenses incurred on the maintenance of market yard (Electrical) being capital in nature whereas the assessee had debited the same in the Income Expenditure account as the expenses were revenue in nature and were recurring expense. 3. At this juncture, we may refer to the view expressed by the CIT(A) which reads as under:- "B.4 In the light of the above principles the nature of expenditu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstruction of pathways boundary wall at NFM - Rs.22,945/- (i) Construction of pathways boundary wall platform for erecting the statue of Ch. Hira Singh - Rs.9,20,348/- + Rs.1,52,964/- = Rs.10,73,312/- (j) Renovation of SE office - Rs.1,15,016/- (k) Fixing statue of Ch. Hira Singh at NFM - Rs.13,40,144/- (l) Raising of boundary wall at NSM - Rs.191,055/- (m) Construction of boundary wall at POMA shed NSM - Rs.4,42,595/- (n) Installation of tube wells at NSM NFM -Rs.6,34,392/- (o) Construction of sewerage lane at NSM - Rs.4,77,033/- (p) Electrical expenses on market yard - Rs.6,17,040/-" 4. To arrive at the aforesaid conclusion, the CIT(A) has placed reliance on Ballimal Naval Kishore v. CIT, (1997) 224 ITR 414 (S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Storm water drain (NSM) (vii) Major repair of street at NSM A- Block (viii) Improvement of water line work (NFM NSM) The expenditure incurred for respective year is listed in the CIT(Appeals)‟s order. In our considered view, all these expenses are revenue in nature and we find no infirmity in th orders of CIT(Appeals) alongwith these expenses being revenue in nature, consequently revenue‟s ground in this behalf are dismissed." 6. In view of the aforesaid factual analysis made by the tribunal and regard being had to the facts which are borne out on record, we are of the considered opinion that the expenditure is absolutely in the realm of revenue expenditure as there has been no construction which has enduring bene ..... X X X X Extracts X X X X X X X X Extracts X X X X
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