TMI Blog2017 (7) TMI 817X X X X Extracts X X X X X X X X Extracts X X X X ..... ncurred by the assessee. It is necessary to emphasise that what Explanation I brings about is a deeming fiction by which expenditure of a capital nature incurred by the assessee for the purposes stipulated therein including inter alia for the construction of any structure or the work of renovation, extension or improvement can form the basis of a claim for depreciation as if the structure or work ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in nature - Income Tax Appeal No. 65 of 2015 - - - Dated:- 17-7-2017 - S. V. Gangapurwala And A. M. Badar, JJ. Mr. N.C. Mohanty for the Appellant Mr. Nitesh Joshi a/w. Ms.Praneeta Mehta i/b. M/s.Junnarkar Associates for the Respondent ORDER PER COURT 1] The present appeal pertains to Assessment Year 2008-09. 2] Mr.Mohanty, the learned counsel for the Appellant subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... expenditure. In the present case, the Tribunal has wrongly relied on the judgment wherein explanation 1 to Section 32(1) of the Act was never a subject matter of consideration. The learned counsel submits that bare perusal of expenses would categorically show that the same are capital in nature. 4] Mr.Joshi, the learned counsel for the Respondent supports the order and further relies on the ju ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n, extension or improvement can form the basis of a claim for depreciation as if the structure or work is a building owned by the assessee. But for the Explanation, an assessee would not be entitled to the benefit of depreciation even if the expenditure which was incurred was of a capital nature and the effect of the Explanation is to entitle the assessee to the benefit of the provisions of Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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