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TMI Blog1998 (2) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... ance of the Commissioner of Income-tax, Tamil Nadu-III, Madras, are for issuance of a direction to the Tribunal to state a case and refer the common question of law for the opinion of this court, as below, for the three assessment years 1985-86, 1986-87 and 1987-88 : "Whether, on the facts and in the circumstances of the cases, the Tribunal was right in holding that the expenditure incurred by th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ure to be allowed, as a deduction under section 31(1) of the Income-tax Act, 1961 (Act No. 43 of 1961 for short the "Income-tax Act"). He appeared to have incurred Rs. 63,356 for the assessment year 1985-86 ; Rs. 1,90,056 for the assessment year 1986-87 and a sum of Rs. 3 lakhs for assessment year 1987-88. The contention of the assessee is that no part of the expenditure is capital in nature, bec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under section 31 (1) or section 37 of the Income-tax Act. (a) Our attention had been drawn to the assessee's own case in CIT v. Dasaprakash [1978] 114 ITR 210 (Mad), wherein the assessee claimed a deduction of an expenditure of Rs. 37,390 incurred in providing decorated mirrors, plaster-moulded roof plywood panels, etc., in respect of the hotel premises during the previous year and the same was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with a view to keep the place fit for the purpose for which persons assembled in the place, namely, for taking food and other edibles, as, without the proper atmosphere, it would not be possible to attract the necessary customers for running the hotel business carried on by the assessee. The expenses cannot be said to be of an enduring nature as the items for which they were used would be of no u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asaprakash [1978] 114 ITR 2 10, it goes without saying that the expenditure incurred by the assessee for the relevant assessment years in repairing and modernising the hotel and replacing the existing components of a portion of the building, furniture and fittings cannot at all be stated to be of enduring in nature, in the nature of being a "capital expenditure" ; but, definitely such an expenditu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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