Allow ability of building renovation expenses
Court :
ITAT, HYDERABAD BENCH
Brief :
Decision by the Hyderabad Bench of the Tribunal in Dy CIT V. Chaya Lakshmi Creations P ltd. removes the dust over the question- “ Whether renovation expenditure on building taken on lease would be capital or revenue in nature?”- That any expenditure that does not alter the building structure would be characterized as a revenue expenditure.
Fact of Case : The assessee , running cinema business, having acquired five cinema theatres on lease, incurred expenditure towards renovations. The Assessing officer labeled such expenses as capital in nature and allowed depreciation thereon
Commissioner ( Appeals) : Disallowed expenditure in respect of marble flooring as capital in nature whereas he allowed rest of the expenses.
Tribunal : Allowed Expenses.
Citation :
ITA Nos. 250 to 252/Hyd/2010
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PANKAJ KHURANA
Published in Income Tax
Views : 4351
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