This is what department did..

395 views 2 replies

Fact of case-

  • 8 story building was 7 yrs old
  • cost of building was Rs 7.2 cr
  • Fassade was changed this year by investing Rs 28 Lacks
  • nothing else was changed

is it capital or revenue expenditure ???

Department treated it capital exp.

But this renovation does not change the functionality neither add any new benifit to the building? is it justified

Replies (2)

It is a capital expenditure only since it increases the value of the building and it will lead to higher sales consideration in the FUTURE if sold.

 

for more queries : https://knowyourtaxation.blogspot.in/

Dear Shashank, increase in resale value cannot be attributed to change in front elevation only, as per my understanding SC ruling was that if the utility of the asset is enhanced then it will be capital expense? 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
29 June 2026
ACCOUNTANT

SANDEEP AASHISH & CO

Araria

B.Com

View Details
Company
09 June 2026
Accounts Associate

S Madan and CO

New Delhi

Graduate (Any)

View Details
Company
ARTICLESHIP 30 June 2026
2 posts Article assistant and Articleship completed students

Chirag N Shah & Associates

Mumbai

CA Inter

View Details
Company
24 June 2026
Chartered Accountant - GST & Direct Tax

APL

Mumbai

CA

View Details
Company
06 July 2026
Chartered Accountant (Indirect Taxation)

Gowra Ventures Pvt Ltd

Hyderabad

CA

View Details
Company
06 July 2026
Accountant

Agarwal Anoop and Associates

Noida

CA Final

View Details
Company
ARTICLESHIP 24 June 2026
CA Article Trainee

Rahul Dang & Associates

Pune

CA Inter

View Details
Company
20 June 2026
Chartered Accountant

ANV & Company

New Delhi

CA

View Details