TMI Blog2018 (7) TMI 2224X X X X Extracts X X X X X X X X Extracts X X X X ..... al premises is not acquisition of capital asset but for the purpose of business of the assessee, therefore, it has to be allowed as revenue expenditure. Since the CIT(Appeals) has followed the order of this Tribunal, judgments of Kerala High Court and Delhi High Court and decided the issue accordingly, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly the same is confirmed. - Decided in favour of assessee. - ITA No.1932/Chny/2017 (Assessment Year : 2008-09), ITA Nos.1934 & 1935/Chny/2017( Assessment Years : 2008-09 and 2009-10), ITA No.1936/Chny/2017(Assessment Year : 2008-09) - - - Dated:- 12-7-2018 - SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI A. MOHAN ALANKAMONY, ACCOUNTANT MEMB ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... D.R., the CIT(Appeals) is not justified in allowing the claim of the assessees. 4. Sh. R. Vijayaraghavan, the Ld.counsel for the assessees, submitted that during the year under consideration, the premises was taken on lease and the assessees incurred expenditure to make it fit for doing their retail business. According to the Ld. counsel, the expenditure incurred by the assessees was claimed as revenue expenditure. However, the Assessing Officer treated the same as capital in nature. According to the Ld. counsel, the expenditure incurred by the assessees is only for the purpose of expansion of their existing business. The expenses were incurred for the purpose of making the lease premises fit for carrying on the business. According to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see is capital in nature, therefore, it cannot be allowed in view of Explanation 1 to Section 32 of the Act. The Assessing Officer as well as the CIT(Appeals) extracted in their impugned order the nature of work carried on by the assessees. As rightly found by the Kerala High Court, after expiry of lease period, the expenditure incurred by the assessees could not be retrieved at all. In fact, on identical situation, the Cochin Bench of this Tribunal in the case of Joyallukas India Pvt. Ltd. found a similar expenditure as capital expenditure since the assessee expanded profit earning apparatus. The Kerala High Court reversed the order of the ITAT, Cochin Bench while holding that the expenditure could not be retrieved by the assessee irrespec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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