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TMI Blog2014 (4) TMI 396X X X X Extracts X X X X X X X X Extracts X X X X ..... own by the assesse - the assessee had incurred additional expenditure of Rs. 24.08 lacs during the year in addition to the expenditure amounting to Rs. 59 lacs, incurred last year - Expenditure of both the AYs prove that same was not of revenue nature – thus, the order of the FAA does not suffer from any legal infirmity – Decided against Assessee. - ITA No. 4799/Mum/2012 - - - Dated:- 2-4-2014 - Sh. I. P. Bansal And Rajendra,JJ. For the Petitioner : Shri Kunjan Gandhi For the Respondent : Shri Pitamber Das ORDER Per Rajendra,AM Challenging the order dt. 12.06.2012 of the CIT(A)-17,Mumbai, assessee has filed following Grounds of Appeal : 1) The learned Commissioner of Income-tax (Appeals)-17,Mumbai, has erred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s on lease for a period of 9 years from 01.04.2005, that as per the agreement dated 09.02.2007 between the assessee and M/s S.Kumar Nationwide Ltd. (SANL) assessee had leased out the premises to SANL for a period of 24 months (09.02.2007 to 08.02.2010), that from the perusal of agreement it was evident that intention of the assessee was to enhance income by incurring capital expenditure by way of renovation of building, that the expenses resulted in enduring benefit to the assessee, that the rental agreement had a condition of renewal of the agreement after a period of two years, that the fruits of expenditure would be enjoyed by the assessee for a long period of time. Referring to the explanation 1 to 32 of the Act, he held that expenditur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... missions of the ld. Representatives of the parties and the orders of the authorities below. We have also carefully considered cases cited by the ld.AR of the assessee (supra).We have also gone through the copies of the agreement entered into between the assessee and its lessee viz. Indo German Alkaloids, a partnership firm and also sister concern of the assessee and have also gone through the copy of leave and license agreement entered into between the assessee and M/s S.Kumar Nationwide Ltd. Dated 9.2.2007 copy of which is placed at pages 1 to 29 of the paper book. 10.We observe that the assessee has taken the said premises vide agreement dated 1.4.2005 at a monthly rent of Rs.3000/- per month from its sister concern, a partnership fir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... elevant to the year under consideration and let out the said premises at monthly rent of Rs.15,00,000/- appears to be a colourable device. Since the said issue is riot before us and the AO has already assessed income so received by the assessee under the head business income and we have confined ourselves keeping in view the above facts as to whether tie said expenditure incurred by the assessee to renovate the said premises is to be allowed as capital expenditure or as a revenue expenditure We have already stated hereinabove the details of the expenditures incurred by the assessee. Considering the above facts, we are of the considered view that the said expenditure has been incurred by the assessee for complete renovation of the buildin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng contribution towards re-construction of the premises Talathi and Panthaky Associated P.Ltd(supra) (iii)Construction was made for the purpose of proper utilization of the premises for business of the assessee.-Nila Products Limited (supra) iv)To carry out the repairs to improve bad condition of the building which assessee itself using for its business purposes- Sandoz (P) Ltd (supra) v)For renovation of the office premises etc. we observe that in the other cases also which are relied on by the assessee before us, expenditure has been incurred to renovate its premises which are used for business purposes and not to create a source to earn income. Hence the said cases are not relevant to the facts of the case before us. 11.Acc ..... X X X X Extracts X X X X X X X X Extracts X X X X
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