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TMI Blog2015 (3) TMI 1120X X X X Extracts X X X X X X X X Extracts X X X X ..... ever the crux of the issues is that the Ld. CIT (A) had erred in confirming the restriction of depreciation towards temporary structures in leased premises to 10% as against 100% claimed by the assessee. 3. The brief facts of the case are that the assessee is a company, engaged in the business of servicing of computers, computer peripherals and telecommunication products and trading of telecommunication products, filed its return of income for the assessment year 2008-09 on 25.09.2008 admitting its income as `3,35,31,354/-. Subsequently the case was selected for scrutiny under CASS and assessment was completed U/s. 143(3) of the Act on 14.02.2010 wherein the Ld. Assessing Officer made certain disallowance amongst which one of the disallowa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and improvement of the leasehold premises. Explanation 1 to Section 32 states as follows:- "Explanation 1- where the business or profession of the assessee is carried on in a building not owned by him but in respect of which the assessee holds a lease or other right of occupancy and any capital expenditure is incurred by the assessee for the purposes of the business or profession on the construction of any structure or doing of any work in or in relation to, any by way of renovation or extension of, or improvement to, the building then, the provisions of this clause shall apply as if the said structure or works is a building owned by the assessee." Thus, there is no distinction between a leasehold building and own building so far as the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... penses by means of improving the leased premises. If it is to get a 'new advantage' then it is capital in nature as per the Supreme Court's decision in the case of Saravana Spinning Mills, 293 ITR 201. (v) to see whether the expenditure is of very temporary in nature eligible for 100% depreciation,. A temporary structure means it will be dismantled within the same year or the next year. Te expenditure on improvement of the building like partitioning, false ceiling etc should not be confused with the temporary structure which will be dismantled within a very short period. 4.2.2 In the instant case, the appellant has put up wooden partitions, false ceiling and other interior works by way of renovation and imkprovement in the leased premises ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and carefully perused the materials available on record and decisions cited by both the parties. It is apparent from the facts of the case that the assessee has incurred an expenditure of `1,18,33,613/- towards refurbishing the leased out premises by incurring expenditure on wooden partitions, false ceiling, ESD tiled floorings, electrical network cabling and interior decoration etc. There is no doubt that the assessee would derive benefit from these structures year after year and therefore, the benefit derived is of enduring nature. From the lease deed of the assessee with its landlord, it is evident that the lease is for a period of nine years which can be further extended by mutual consultation (page 3 of the paper book). It is also evid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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