TMI Blog2003 (12) TMI 28X X X X Extracts X X X X X X X X Extracts X X X X ..... after the execution of the agreement to sale under the belief that the assessee will own the property very soon – Thus, we are of the view that the Tribunal was justified in holding that the expenditure of Rs. 1,05,377 was not revenue expenditure. - - - - - Dated:- 16-12-2003 - Judge(s) : S. K. KULSHRESTHA., ASHIM KUMAR TIWARI JUDGMENT The judgment of the court was delivered by S.K. KUL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tal expenditure and made an addition of the same after allowing depreciation at the rate of ten per cent. under section 32(1A) of the Act. The addition was maintained in appeal by the Commissioner of Income-tax (Appeals). In further appeal to the Tribunal, in view of the fact that investment in the building was made by the assessee when the assessee was occupying the building by virtue of the sa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en obtained on a very low rent on condition of constructing the building in place of the old building, thus, resulting in saving of revenue expenditure (rent) for a period of 39 years. It was in context of these facts that their Lordships observed that it was a revenue expenditure. Learned counsel for the Department has invited attention to the decision of the Supreme Court in Travancore-Cochin Ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment was executed between the assessee and the owner of the property-Shri Tej Kumar Sethi-who happens to be the father of the two directors of the company and out of the stipulated consideration of Rs. 2,50,000, Rs. 1,50,000 was given in advance by the assessee to the owner of the building and the remaining amount of Rs. 1,00,000 is to be paid at the time of the execution of the sale deed. As per ..... X X X X Extracts X X X X X X X X Extracts X X X X
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