9911796707
TMI Blog2015 (12) TMI 98X X X X Extracts X X X X X X X X Extracts X X X X ..... curred by assessee on painting relaying of damaged floors, partitions etc. in leasehold premises is allowable as revenue expenditure". - Decided against revenue - I.T.A. No.3084/Mds/2014 - - - Dated:- 2-9-2015 - SHRI CHANDRA POOJARI, ACCOUNTANT MEMBER For The Appellant : Shri. A.S. Sriraman, Advoc For The Respondent : Shri. A.B. Koli, IRS, JCIT. ORDER This appeal by the assessee is directed against the order of the Commissioner of Income Tax (Appeals)-I, Chennai, dated 24.07.2014 for the assessment year 2005-2006. 2. The grievance of the assessee in this appeal is with regard to treating an expenditure of A3,89,670/- incurred on partitions and structures for the leasehold building, as capital expenditure and grante ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the same as capital expenditure as per Explanation 1 to Sec.32 and allowing depreciation on the same. Accordingly, the Commissioner of Income Tax (Appeals) dismissed the ground of the assessee. Against this, the assessee is in appeal before us. 5. Both sides heard and perused the material on record. In this case there is no dispute with regard to assessee incurring the above expenditure on leasehold premises. The fact is that the expenditure was incurred for making wooden partitions and temporary structures in the leasehold building and the above additions does not have any civil work. Being so, the findings of the Tribunal in the case of M/s. Sundaram Asset Management Co. Ltd in ITA Nos.1241 1154/Mds/2014 for the assessment years ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s carried on in a building not owned by him, in respect of which the assessee holds a lease or other rights of occupancy, any capital expenditure is incurred by the assessee for the purpose of the business or profession on the construction of any structure or doing of any work in or in relation to and byway of renovation or extension or improvement to the building, then the provisions of this clause shall apply as if the said structure or work is building owned by the assessee. However, the aforesaid provisions are applicable where new asset has come into existence. The assessee in support of his contentions has relied on the order of the co-ordinate bench of the Tribunal in the case of M/s. Sundaram BNP Paribas Asset Management Company Ltd ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e same has to be decided on the facts of each case. We find that the facts of the case of the assessee are similar to the one adjudicated by the Tribunal mentioned above. The civil work relates to the interior decoration and creation of the office atmosphere. Respectfully following the decision of the co-ordinate bench of the Tribunal, this ground of appeal of the assessee is allowed and the expenditure incurred by the assessee in modifying the interiors of a building into office are held to be revenue in nature. 11. The co-ordinate Bench considered a similar issue where the assessee claimed expenditure on civil work which includes demolition, painting, flooring and partition etc. as revenue expenditure. The Tribunal after considerin ..... X X X X Extracts X X X X X X X X Extracts X X X X
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