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2015 (5) TMI 572 - ITAT PUNEDisallowance of renovation or maintenance expenditure of a part of the hotel building - revenue expenditure or capital expenditure - Held that:- As relying on Comfort Living Hotels P. Ltd. vs. CIT, (2014 (3) TMI 585 - DELHI HIGH COURT ) mere increase in the room size due to inclusion of balcony area would not result in creation of any new asset or increased profit yielding capacity so as to render the expenditure capital in nature. In-fact, the benefit to the assessee accruing as a result of the impugned expenditure, though spread over a number of years, is certainly in the revenue field and therefore such an expenditure provides the assessee with an advantage in a commercial sense and therefore the expenditure has to be held to be revenue in nature, following the principles laid down by the Hon’ble Supreme Court in the case of Empire Jute Co. (1980 (5) TMI 1 - SUPREME Court ). As a consequence, we therefore set-aside the order of the CIT(A) and direct the Assessing Officer to delete the disallowance and treat the expenditure of ₹ 1,44,03,077/- as revenue in nature in terms of section 37(1) of the Act. - Decided against revenue.
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