TMI Blog2010 (12) TMI 783X X X X Extracts X X X X X X X X Extracts X X X X ..... ement of GC sheets and aluminium sheets is not to bring into existence any new asset or new advantage to the assessee - Held that: the expenditure has to be treated as expenditure for current repairs - Decided in the favour of assessee - ITA No. 718(Bang)/2010 - - - Dated:- 15-12-2010 - P. Madhavi Devi, A. Mohan Alankamony, JJ. G.V. Gopala Rao for the Appellant S. Anantha for the Respondent ORDER P. Madhavi Devi: This appeal is filed by the revenue against the order of the CIT(Appeals)-III, Bangalore, dated 15-2-2010 for the assessment year 2004-05. 2. The revenue has raised the following grounds of appeal: 1. The order of the Ld. IT(A) is opposed to law and facts of the case. 2. The Ld. CIT(A) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red towards purchase of GC sheets, aluminium sheets and fixing and fabricating the damaged gate and roof on account of hail storm. It was submitted that the assessee had undertaken extensive renovation by replacing the roof of the factory used for regular business operations and therefore the expenditure is revenue in nature. The AO, however, held that the said expenditure has given enduring benefit to the assessee and therefore it is capital in nature and allowed depreciation thereon. Aggrieved, the assessee preferred appeal before the CIT(A) who allowed the same and the revenue is in appeal before us. 4. Shri Gopala Rao, learned departmental representative, strongly placed reliance upon the order of the AO and submitted that the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here is an enduring benefit, it cannot be said to be capital expenditure. Thus according to him, the CIT(A) has rightly deleted the addition and has to be upheld. 5. Having heard both the parties and having considered the material on record, we find that it is not in dispute that the factory building of the assessee had been damaged due to hail storm which occurred on March 12, 2002 and the entire expenditure claimed by the assessee is only for replacement of the sheets on the roof of the factory building. The expenditure figure is very high but keeping in view the extent of the factory building of the assessee which is dealing with the manufacture of heavy machinery such as earth movers, the expenditure is reasonable. Further, the genu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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