TMI Blog2016 (6) TMI 486X X X X Extracts X X X X X X X X Extracts X X X X ..... the facts of the case on hand. The expenditure incurred and claimed by the assessee is capital in nature and the assessee is not entitled to claim deduction as revenue expenditure. See Empire Jute Co. Ltd Vs. CIT reported in (1980 (5) TMI 1 - SUPREME Court) - Decided against the assessee. - I.T.A No. 1666/Kol/2013 - - - Dated:- 31-5-2016 - Shri P. M. Jagtap Accountant Member And Shri S. S. Viswanethra Ravi Judicial Member For the Appellant : Shri Abhijit Biswas Dr. Samir Chakraborty, Advocates,Ld.ARs For the Respondent : Shri Sital Chandra Das, JCIT, Ld. Sr.DR ORDER Shri S. S. Viswanethra Ravi, JM This appeal of the assessee is arising out of the order of the CIT(A),XII, Kolkata in Appeal No. 493/XII/Cir-10/08-0 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aintenance expenses in respect of its buildings. According to assessee, the details of said expenditure was incurred by the assessee for its offices situated in three locations, Cochin, Lucknow and Kolkata. Further, the said expenditure was incurred under the invoices raised by M/s. Deva Interiors. The view of the AO was that such expenditure is capital in nature for the reason that the said expenditure has created new asset on existing structure as extension which rendered advantage to the assessee s business. The AO treating the same as capital in nature added to the income of assessee. 4. In 1st appeal the assessee contended before the CIT-A that the assessee has not created any new asset, but it had incurred the said expenditure to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed the same as capital expenditure. 7. In reply, the Ld. DR submitted that the assessee purchased a huge volume of goods for the first time for its business and it has to be treated as capital expenditure. Further argued that the action of the AO and confirming the same by the CIT-A treating the same as capital expenditure is justified. He relied on the orders of the revenue authorities below. 8. The only question is to be decided in this appeal as to whether the expenditure incurred and debited in the P L account under the head repairs maintenance is a capital expenditure or revenue expenditure. 9. Heard the rival submissions and perused the material available on record. We find that the invoice issued by the interior contra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ver, the description as shown at pages 1-48, the expenditure incurred created a new asset. The contention of the assessee was that it only carried out repair works for its existing units/offices by removing old furniture with that of new furniture. This contention of the assessee is not acceptable for the reason that the expenditure incurred and description of work shows that it created a new asset to the assessee. As rightly pointed out by the Ld. DR that the assessee purchased a large volume of furniture for its offices located in three said locations for the first time. 10. As regards the reliance placed by the assessee on the case of Indian Ginning Pressing Co. Ltd Vs. CIT reported in 252 ITR 577(Guj) and also in the case of CIT Vs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... has been incurred. But a few tests formulated by the courts may be referred to as they might help to arrive at a correct decision of the controversy between the parties. One celebrated test is that laid down by Lord Cave, LC in British Insulated Helsby Cables Ltd. v. Atherton 10 TC 155 where the learned Law Lord stated: When an expenditure is made, not only once and for all, but with a view to bringing into existence an asset or an advantage for the enduring benefit of a trade, there is very good reason (in the absence of special circumstances leading to an opposite conclusion) for treating such an expenditure as properly attributable not to revenue but to capital 11. In the aforesaid decision the Hon ble Supreme Court supra ..... X X X X Extracts X X X X X X X X Extracts X X X X
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