banner_ad

Revenue or Capital

This query is : Resolved 
Profile Image

Profile Image

(Querist)
27 August 2008 Court : Appellate Tribunal

Brief : : The assessee was engaged in the business of running a hotel. During the year under consideration it had spent a sum of Rs.7.06 lacs on construction of glass curtain wall on the front side of the hotel, which was in addition to the existing building wall. The assessee claimed that the entire expenditure was revenue in nature which was incurred to improve the look of the existing building and for trendy and better look to attract customers. According to the AO, the work done was of enduring nature and held the same to be capital in nature. On appeal, the CIT(A) observed that the expenses incurred by the assessee resulted in creation of new assets, as it was an addition to the existing hotel building.



Citation : Fition Hotel v. ITO

Judgment :

Tribunal held that there was no merit in holding such expenditure as capital in nature and it allowed the expenditure claimed as current repair

Posted by : CA.Tarun Maheshwari [Scorecard : 481]



It Should Be Treated As Capital Expenditure
Profile Image

S.Srinivasaraghavan

Profile Image

S.Srinivasaraghavan (Expert)
28 August 2008 Yes, there is no merrit in holding it as capital.
Profile Image

CHEZHIYAN

Profile Image

CHEZHIYAN (Expert)
28 August 2008 Yes... in my piont of view.. the judjment is right..
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
26 May 2026
CA / MBA (Finance) / CMA / M.Com (Finance)

Sri Aurobindo Gnostic Centre of Education

New Delhi

CA

View Details
Company
29 May 2026
Accounts assistant

Shubh Consultancy

Mumbai

Graduate (Any)

View Details
Company
08 May 2026
Paid Assistants

Quick Taxperts Private Limited

Bengaluru

Graduate (Any)

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details
Company
Featured 26 May 2026
Account Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details