2006 (5) TMI 485

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... at are the necessary repairs which are required to be done - all such expenditures which were incurred on painting, polishing of the floor providing wooden panelling etc. is revenue expenditure and the nature of repairs is not of an enduring character so as to characterise as capital expenditure. Appeal dismissed.
T.S. Thakur And Shiv Narayan Dhingra, Jj. For the Appellant : P.L. Bansal and Vishnu Sharma. For the Respondent : R.M. Mehta. ORDER SHIV NARAYAN DHINGRA, J. This appeal has been filed against the order of the Tribunal whereby the Tribunal allowed expenditure of ₹ 30,94,337 incurred by the assessee for providing wooden partition, painting, glass work and other petty repairs in the leased premises, as revenue expenditu .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... h this process cost the company less than the original process, it made the floor more durable. The contention of the department was that by this particular process a new asset had come into existence and, therefore, the amount spent was not of a revenue nature. That contention was rejected by this court and this court took the view that the assessee was only maintaining and preserving an asset, which he already possessed, by the process which he adopted. The life of the asset was made longer and it was made to give better service than it was doing in the past. This Court took the view that the expenditure incurred was not of a capital nature. The principle in David Mills Ltd.'s case was followed in Meyor Mills Ltd.'s case where the amount .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... esaid finding and the decision in Regal Theatre [1966] 59 ITR 449 (Punj.) we hold that the expenses incurred by the assessee in putting up the wooden panelling did not result in any enduring benefit to the assessee and, therefore, was deductible as a revenue expenditure. . .." (p. 226) 4. We consider that the amount spent on providing wooden partition, painting of leased premises, carrying out repairs so as to make the premises workable, to replace glasses etc. has to be considered as revenue expenditure. It is for the businessman to see as to in what manner the leased premises is to be maintained and what are the necessary repairs which are required to be done. We consider that all such expenditures which were incurred on painting, p .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X