Expenditure on leave & licence premises
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
06 August 2012
Assessee is a pvt Ltd Company, & has taken premises on Leave & Licence.
The assessee has incurred Expenditure on flooring/ Painting/ Renovation ( Huge Amount)
The assessee can capitalise these expenses as What Furniture Fixture or Furniture Fittings, or Repairs & Renovation Cpaitalised( though these are not related to furniture)
this question is asked because after say 2-3 years if the assesee vacates the premises, the assessee cannot take these fittings along, then at that time what happens to the block of assets?
The assessee has incurred Expenditure on flooring/ Painting/ Renovation ( Huge Amount)
The assessee can capitalise these expenses as What Furniture Fixture or Furniture Fittings, or Repairs & Renovation Cpaitalised( though these are not related to furniture)
this question is asked because after say 2-3 years if the assesee vacates the premises, the assessee cannot take these fittings along, then at that time what happens to the block of assets?
Amol S Joglekar
(Expert)
06 August 2012
Many caselaws are available where the tribunals have agreed to treat such expenditure as revenue expenditure.
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