2015 (8) TMI 514

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..... o increase the sitting capacity of a bar in a hotel should be treated as revenue expenditure since it was incurred to enhance the business profit. The court is of the view in the facts of this case that the ITAT has rightly affirmed the order of the CIT (A) treating the cost of the marble used to replace the flooring as revenue expenditure. The question is, therefore, answered in the affirmativ .....

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..... nal question issue that arises in this AY is whether the ITAT was justified in holding that the expenditure of ₹ 28,40,587/- incurred on laying marble flooring is allowable as revenue expenditure/current repairs and not capital expenditure? 4. From the assessment order dated 22nd March, 1999, it is seen that the assessee had by a letter dated 19th March 1999 explained to the Assessing Off .....

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..... ure incurred on removing the walls to increase the sitting capacity of a bar in a hotel should be treated as revenue expenditure since it was incurred to enhance the business profit. 6. The court is of the view in the facts of this case that the ITAT has rightly affirmed the order of the CIT (A) treating the cost of the marble used to replace the flooring as revenue expenditure. The question is .....

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