TMI Blog2016 (6) TMI 1266X X X X Extracts X X X X X X X X Extracts X X X X ..... ,DR Respondent by : Mr.T.N.Seetharaman,Advocate O R D E R PER CHANDRA POOJARI, ACCOUNTANT MEMBER All these three appeals filed by the Revenue are directed against the common order of the Learned Commissioner of Income Tax(A)-2, Chennai dated 30.09.2015 pertaining to the assessment years 2008- 09,2009-10 2010-11 . Since issues involved in all these Revenue s appeals are common in nature, these appeals are clubbed together, heard together, disposed off by this common order for the sake of convenience. 2. The common ground in all these three appeals is that the CIT(A) erred in holding that the expenditure incurred on temporary wooden structures are allowable as revenue expenditure. 3. The facts of the case are th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onformity with the design specifications of the particular brand. A perusal of the letter of intent issued by Titan Industries Ltd. dt. 15.3.2012 to the assessee shows that the terms of setting up an exclusive Fast Track Stores have been stated as follows: b) An Interior Design Consultant (IDC) nominated by the Company will design the showroom. The selection of the contractor and approval of the materials to be used for the works will be at the sole discretion of the IDC in consultation with the Company. c) The completion of the showroom and materials to be used for the works, are to be as specific by the IDC approved by the Company. d) On successful completion of the showroom in accordance with designs and materials approved by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n order to ensure compliance with such obligations, and the Franchisee shall, at its own expense, comply with such requirements forthwith. 2.4. Without prejudice to the generality of Section 2.3 above, when required by a-India to do so and, in any event, once in every three years, the Franchises shall carry out maintenance and renewal program on the interior and exterior of the Brand Store, This may include renovation or replacement of the Furniture and Equipment and updating the fascia, image, lay-out and style of the Brand Store by carrying out all refurbishment work deemed necessary by a-India so as to comply with the latest adidas design and image. Further, Ld.CIT(A) observed that in order to bring into existence the showroom o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e by observing it as a revenue expenditure. Against the decision of CIT(A), the Revenue is in appeal before us. 4. We have heard both the parties and perused the material on record. We have carefully gone through the order of the Ld.CIT(A). In our opinion, the issue is squarely covered in favour of the assessee by the judgment of jurisdictional High Court in the case of CIT Vs. Armour Consultant (P) Ltd. reported in (2013) 355 ITR 418(Mad.) wherein held that:- The expenditures were made by the assessee mainly towards charges for design, layout and material construction, fabrication works. Both the appellate authorities had pointed out that the assessee-company was required to incur such expenditure for providing partitions, vinyl flo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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