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The Commissioner of Income Tax, Chennai Versus N. Ragunath

2017 (12) TMI 411 - MADRAS HIGH COURT

Depreciation on temporary wooden structure for interior decoration effected to the buildings and the showrooms - Held that:- In order to bring into existence the showroom of a particular brand, the assessee carried out certain specific interior works involving interiors, furniture and equipment in the premises, which was leased out to the assessee and that the interior decoration works were carried out in line with the specifications of the brand, whose products were sold by the assessee as a re .....

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y the Tribunal in the impugned order. - Tax Case Appeal Nos.515 to 517 of 2017 & CMP.Nos.12742 & 12743 of 2017 - Dated:- 28-11-2017 - T. S. Sivagnanam And M. Sundar, JJ. For Appellant : Mr. T. Ravikumar For Respondent : Mr.R.Kumar JUDGMENT ( Judgment was delivered by T. S. Sivagnanam, J. ) Mr.R.Kumar, learned counsel accepts notice for the respondent. 2. These appeals are directed against the common order passed by the Income Tax Appellate Tribunal in I.T.A.Nos.2280, 2281 and 2282/Mds/2015 dated .....

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eafter, the notices under Section 143(2) of the said Act were served on the assessee. During the course of assessment proceedings, the assessee claimed depreciation allowable at 100% on temporary wooden structure for interior decoration effected to the buildings and the showrooms, in which, the assessee was carrying on his ready made garments business. 4. In the books of accounts maintained, the assessee claimed depreciation of 10% of such decoration. During the course of re-assessment proceedin .....

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th effect from 01.4.1988. 5. The assessee carried the matter on appeal before the Commissioner of Income Tax (Appeals), who decided the issue in favour of the assessee. The Revenue filed the appeals before the Income Tax Appellate Tribunal, which were dismissed, as against which, these appeals have been filed before this Court, raising the following substantial questions of law : "1. Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the large .....

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at the expenditure incurred on temporary wooden structure are allowable as revenue expenditure and not capital?" 6. The issue which falls for consideration is as to whether the Commissioner of Income Tax (Appeals) and the Tribunal were right in holding that the assessee is entitled to 100% depreciation on the interior decoration work done, as the assessee does not derive an enduring benefit nor it can be stated to be a capital asset. 7. Firstly, we wish to point out that the issue raised be .....

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) in paragraph 3.2.1 of the order dated 30.9.2016. The assessee placed reliance on the decisions of the jurisdictional High Court in the cases of (i) CIT Vs. Ayesha Hospitals (P) Ltd. [reported in 292 ITR 266]; (ii) Thiru Arooran Sugars Ltd. Vs. DCIT [reported in 350 ITR 324]; (iii) CIT Vs. Armour Consultants P. Ltd. [reported (2013) 355 ITR 418]; (iv) CIT Vs. Amrutanjan Finance Ltd. [reported in (2011) 15 Taxmann.com 392] and (v) M/s.Sundaram BNP Paribas Asset Management Co. Ltd. Vs. ACIT, Chen .....

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