TMI Blog1984 (3) TMI 49X X X X Extracts X X X X X X X X Extracts X X X X ..... gs, etc., was allowable as revenue expenditure ? " The assessee, a registered firm, is a tenant of a cinema theatre. During the year ending March 31, 1975, the firm renovated the theatre and incurred expenses such as the following : Rs. " Furniture polishing materials, etc. 2,449.50 Chair brackets 2,385.00 Cement flooring 2,640.00 Plaster of paris for ceiling walls 19,625.00 Cement 4,891.00 Ceiling 15,000.00 Wages for fitting chairs 8,660.00 " The assessee claimed the above sums as revenue expenditure in its assessment for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Jute Co. Ltd. v. CIT [1980] 124 ITR 1 (SC), at p. 10, Bhagwati J., speaking for the Bench of the Supreme Court, observed: "There may be cases where expenditure, even if incurred for obtaining advantage of enduring benefit, may, none the less, be on revenue account and the test of enduring benefit may break down. It is not every advantage of enduring nature acquired by an assessee that brings the case within the principle laid down in this test. What is material to consider is the nature of the advantage in a commercial sense and it is only where the advantage is in the capital field that the expenditure would be disallowable on an application of this test. If the advantage consists merely in facilitating the assessee's trading operation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the Department, however, urged that the assessee as a tenant is entitled to certain deductions by way of written down value of the structure or work put up by him as a lessee, in respect of the depreciation of such structure or work under s. 32(1A) of the Act and, therefore, it must be presumed that whatever he has spent by way of renovation or improvement to the building should also be regarded as a capital expenditure. We do not think that s. 32(1A) could be construed in that manner. Section 32(1A) is a special provision enacted for the benefit of lessees providing for depreciation on the structure or work put up by them in leasehold premises which, in the normal course, they are not entitled to, since they are not the owners. That is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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