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TMI Blog2016 (6) TMI 486X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee has raised the following grounds of appeal:- " GROUND-I 1. The learned CIT(A) erred in disallowing Rs. 1,00,50,077/- by treating it as capital in nature though incurred on Repairs and maintenance of existing structure. 2. He failed to appreciate and ought to have held that: a. These expenses were incurred in dismantling old furniture and have not given rise to any new asset. b. Renovation/remodeling has been done on fixed assets/premises and expenses are incurred to facilitate the business of the Appellant. 3. The Appellant therefore prays that the expenses be treated as revenue in nature and be allowed as deduction. GROUND-II The Appellant craves leave to add, amend, and/or alter the above ground of appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dian Ginning & Pressing Co. Ltd Vs. CIT reported in 252 ITR 577 (Guj) and the Hon'ble Rajasthan High Court in the case of CIT Vs. Dr. A.M Singhvi reported in 212 CTR 1(Raj). After considering the above, the CIT-A opined, that the expenditure incurred towards renovation of office premises is capital in nature as it increased the value of asset and confirmed the order of the AO. 5. Aggrieved, the assessee is in appeal before us by raising respective grounds of appeal, which have been mentioned herein above. 6. During the course of hearing before us the Ld. Counsel for the assessee submitted that all the expenditure debited to Profit & Loss account was incurred for repairs and maintenance of existing structures. The assessee did not put or a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... work to its existing offices at three locations. On perusal of the invoices and final bill issued for the purpose of inclusive interior and allied works for its Kolkata office. Copy of the same are available pages 1-10 of the paper book. Description therein shows that the works were for fixing 12mm thick glazed partition, cabin flush doors, finished with lamination, fixing low height, full height and overhead fitting storage unit made out of salwood etc... and for providing of executive and conference tables and entrance door etc .. for which the said interior contract was charged at Rs. 40,63,395. Likewise, the assessee incurred an expenditure of Rs. 26,51,693 for its office located at Cochin. For which also same kind of interior work done ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re Jute Co Ltd vs CIT that every case has to be decided on facts keeping in mind that broad picture of whole expenditure incurred. In the present case, it is only afactual aspect to be decided whether the expenditure incurred under the repair and maintenance is revenue or capital expenditure in nature. As stated above, a perusal of the material documents available at pages 1-48 it clearly establishes that large volume of wooden work by way of partitions, storage units, interior work and electrical work etc.. has been undertaken which created completely a new asset for the benefit of its trading. In this regard, we may refer to the observations of the Hon'ble Supreme Court in the case of Empire Jute Co. Ltd Vs. CIT reported in 124 ITR I(SC) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibutable to capital expenditure in nature. In the present case also the assessee incurred expenditure for its three locations to the extent of Rs. 1,00,50,077/- under the head repairs and maintenance and the said expenditure created a new asset for the benefit of assessee for its trade. Therefore, we are of the view that the case laws as relied on by the assessee are distinguishable and do not apply to the facts of the case on hand. Taking support from Hon'ble Supreme Court supra we hold that the expenditure incurred and claimed by the assessee is capital in nature and the assessee is not entitled to claim deduction as revenue expenditure. The order of CIT-A is justified in confirming the addition made by the AO, accordingly, ground no-I is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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