TMI Blog2012 (9) TMI 801X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee has started a new line of revenue generation or started getting an altogether new advantage of enduring benefit. Therefore, it can be concluded that substantial repair may be advantageous for retaining an existing asset but such an enduring benefit may not lead to a conclusion that a capital asset has been created through which a new enduring advantage was created, thus expenditure in question was a business requirement as decided by the assessee to incur such huge expenditure on commercial consideration - in respect of hotel industry it was held that even the modernization of hotel building is allowable as revenue expenditure because such an expenditure was found to be incurred with a view to create a conducive and beautiful atmos ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TR 942 (Guj.), (iv) CIT vs. Madras Spinners Ltd. (1994) 207 ITR 35 (Ker.), (v) CIT vs. Satyadev Chemicals Ltd. (1997) 226 ITR 95,96 (Guj), (vi) CIT vs. Binny Ltd. (1995) 215 ITR 536, 540 (Mad) (vii) CIT vs. P.Veriah 211 ITR 244,245 (Ker.). However, the AO was not convinced and opined that such a huge expenditure was incurred for purchase of plywood for making new furniture and fixture and, therefore, derived enduring benefit. On verification of bills, it was also noted by the AO that a substantial amount of Rs.8,68,543/- was also paid for labour charges. According to AO, there was no bill through which it could be indicated that the old structure was removed or replaced. According to AO, the wood panel work was a new construction and, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and, the appellant had furnished all the bills for purchase as well as even in the labour bills it has clearly been mentioned that old panels have been replaced. Thus, on one hand, the inference of A.O. without any supporting material being placed on record whereas on the other hand, the documentary evidences produced clearly shows repairs/replacements and not for any new furniture or fixture as held by the A.O. Besides the judicial pronouncements as relied on by the appellant clearly and unequivocally supports the facts of the case. The Hon.Madras High Court in the case of CIT vs. Dasaprakash, supra was clearly in favour of the appellant. In view of above facts, I hold that the expenditure of Rs.17,38,395/- was incurred for repairs/rep ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 002) 258 ITR 562(Raj.). 6. We have heard both the sides at some length. We have also examined the contents of the compilation containing invoices for purchase of plywood and glasses. There are number of invoices for purchases of various sizes of plywood-sheet, glass and wood. This is an accepted fact that the assessee is in hotel industry. Due to this reason, the assessee is expected to keep the premises in good shape as also neat and clean. It was explained that the visitors expect a hotel should look beautiful. Therefore, the vehement argument is that the expenditure was a business requirement. By examining the invoices and other details of the expenses, it can be noticed that no new asset was created. The labour was engaged for repla ..... X X X X Extracts X X X X X X X X Extracts X X X X
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