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TMI Blog2014 (12) TMI 1252X X X X Extracts X X X X X X X X Extracts X X X X ..... 80HHC. Also see Pogagen and Nagarsheth [2014 (3) TMI 934 - GUJARAT HIGH COURT] Allowance of expenditure claimed on repairs of building - Held that:- It is a settled position of law that the expenditure to preserve and maintain an already existing asset would constitute repairs. We are of the opinion that the Tribunal was justified in considering the replacement of flooring amounting to ₹ 1,30,500/- and replacement of wall amounting of ₹ 1,92,920/- as revenue expenditures. However, we find that the Tribunal has committed an error in not considering the expenses incurred for erection of new wall to the tune of ₹ 1,40,000/- and erection of wall to the tune of ₹ 1,68,000/- as capital expenditure. The CIT(A) has proce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for consideration of the following substantial question of law: [A] Whether on the facts and in the circumstances of the case, the Appellate Tribunal is justified in holding that the total turnover for the purposes of reduction u/s.80HHC will not include Central Sales Tax, Gujarat Sales Tax and Excise Duty even after insertion of Section 145 A? [B] Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in confirming the order of the CIT(A) whereby he allowed the expenditure of ₹ 1,30,500/- on removal of old tiles and providing of new flooring and ₹ 5,00,900/- on construction of a new masonry compound wall by replacing barbed wire fencing. 3. The first issue involved in this app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... all ₹ 5,00,900/- Total ₹ 6,31,400/- 4.1 The Assessing Officer had disallowed the expenditure as being on replacement, it gave a new and different advantage of enduring nature. The CIT(A) allowed the same with the observation that these were the items already present which had gone down due to wear and tear and had been repaired and redone. The Tribunal confirmed the order of CIT(A) which finding has been challenged by the revenue in the present appeal. 5. We have gone through the impugned order passed by the Tribunal. It is a settled position of law that the expenditure to preserve and maintain an already existing asset would constitute repairs. We are of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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