TMI Blog1988 (1) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... ed an association and the association repaired the entire building. The expenses were apportioned amongst the tenants. The share of assessee in the repairs came to Rs. 33,500. The details of repairs to the portion in occupation of assessee were as follows : (i) Concrete plastering of the side walls which had become dilapidated. (ii) Plastering of the upper portion. (iii) Replacement of certain beams which had been been eaten by white ants. (iv) Repairs of a part of the flooring which had got damaged by continuous use. (v) Repairs of doors and windows. The assessee continued the business in the premises in question during the period when repairs were carried on. The assessee pleaded that amount of Rs. 33,500 represented revenue e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not by itself decisive of the question whether it is of the nature of revenue or capital. The above principle is laid down in the decision of Bombay High Court in CIT v. Oxford University Press [1977] 108 ITR 166. 4. When this principle is applied it is obvious that this case would fall in the category of a case where expenses are for preservation or maintenance of an already existing asset and not in the category of a case where as a result of expenditure a new asset or new advantage is being brought into existence. The submission of the learned departmental representative that this would be a case where new advantage is being brought into.existence because the life of the premises was extended because of the expenditure cannot be acc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at expenses on repairs could be allowed only under section 30 of the Act under which essential condition is that the assessee should have undertaken to bear the cost of repairs. 7. Here again, it is not necessary that the assessee should prove that there was a contract with the landlord under which liability for repairs was that of the assessee. When the landlord fails in his duty to make repairs and when there is no expeditious and convenient means by which the landlord could be compelled to make repairs and when on account of accumulated repairs the premises are in the danger of becoming unusable for business purposes then if the tenant decides to make repairs himself and bear the expenses, it would be a case where the tenant has undert ..... X X X X Extracts X X X X X X X X Extracts X X X X
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