TMI Blog2003 (5) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... nature of expenses. Once the expenses are on the assets, which are of enduring nature that expenditure should be allowed as capital expenditure - Tribunal has committed error in allowing the expenses in question as revenue expenses. - - - - - Dated:- 13-5-2003 - Judge(s) : Y. R. MEENA., MRS. GYAN SUDHA MISRA. JUDGMENT Heard. On an application under section 256(1) of the Income-tax Act, 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ereafter restored the original swimming pool and boundary wall at the same place and with the same height and incurred expenditure of Rs. 59,500 and Rs.74,606 respectively, and claimed these expenses as revenue expenditure. The Income-tax Officer was of the view that the construction of swimming pool and boundary wall is an asset which is of enduring nature. In the appeal before the Commissioner o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r. Bhandawat submits that when the expenses are incurred on the assets which are of enduring nature, they should be treated as capital expenditure and not revenue expenditure. He has placed reliance on the decision of the Karnataka High Court in Senapathy Synams Insulations (P.) Ltd. v. CIT [2001] 248 ITR 656 wherein on similar facts an expenditure on boundary wall which was constructed by the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dary wall, which are of enduring nature, it cannot be said that these expenses are revenue expenses especially when it is not denied that the expenses on assets are of enduring nature. Whether the swimming pool and the boundary wall have been constructed or reconstructed at the court's order that does not make any difference in the nature of expenses. Once the expenses are on the assets, which a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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