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TMI Blog2017 (3) TMI 1222X X X X Extracts X X X X X X X X Extracts X X X X ..... of expenses as capital expenditure and 35% to be Revenue expenditure as per its authorized person’s survey statement operative from the impugned assessment year. The assessee’s sole endeavor accordingly before us is to claim only 35% of the expenditure as revenue and balance 65% to be capital expenditure as per its above survey statement. Learned Departmental Representative appearing at Revenue’s behest fails to dispute all the above-stated survey developments as well as treatment of the very head of expenditure as revenue in nature in preceding assessment years and partly capital and partly revenue expenditure in latter assessment years. We therefore accept assessee’s limited contention and direct the Assessing Officer to treat 65% of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of five years from financial year 2007-08 relevant to the impugned assessment year could be considered to the Revenue expenditure and balance 65% as capital expenditure. The assessee then withdrew its abovestated appeal. It thereafter chose to file Section 264 revision petition. Learned CIT-I, Baroda passed his order on 21.12.2012 that the above petition was hit by bar of jurisdiction u/s.264(4)(c) of the Act. Since the CIT(A) had already dealt with the issue. The assessee then withdrew the said petition as well on 21.12.2012 once again coming back to this tribunal by way of the instant appeal. All this has caused a delay of 491 days in question. The Revenue is fair enough in not disputing above solemn averments. We therefore are of the vie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v CIT is the most appropriate one regarding expression current repairs . In the case of New Shorrock Spinning and Manufacturing Co Ltd v CIT, Chagla C3. observed that the expression current repairs means expenditure on buildings, machinery, plant or furniture which is not for the purpose of renewal or restoration but which is only for the purpose of preserving or maintaining an already existing asset and which does not bring a new asset into existence or does not give to the assessee a new or different advantage. In the case of Saravana Spinning Mills Pvt. Ltd. (2007) 293 ITR 201 (SC), it was held that expression current repairs denotes repairs which are attended to when the need for them arises, such expenditure must have been incurre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g material of various kinds for these rooms. Item nos. 14, 25, 26 27 of the details submitted for repairs to plant and machinery are also purchase of material for Room Nos. 305 - 312 in Hotel Express Residency (H2). Item No. 123 124 are towards consultancy fees of ₹ 1,91,012/- to interior decorator and designer, Dipen Gada and Associates for interior decoration and design of Banquet Hall and rooms on 3rd floor of Hotel Express Residency (H2). The nature and scale of material purchased coupled with fact of engagement of interior decorator on substantial fees shows that renovation and not repairs of rooms on 3rd floor as well as the Banquet Hall of Hotel Express Residency (H2) was carried out. Similarly, item nos. 8, 14, 62, 103, 11 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lant claimed following amounts under the head repairs to building and repairs to plant and machinery over the years; AY Repairs maintenance to building (Rs.) Repairs maintenance to plant and machinery (Rs.) 2005-06 45,84,858/- 41,11,215/- 2006-07 32,31,898/- 44,60,153/- 2007-08 42,41,633/- 79,30,366/- As per the balance sheet as on 31.3.2008, gross block of buildings was ₹ 92,81,309/- and of plant machinery ₹ 2,55,91,042/-. The quantum of expenditure shown and clai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ilding. Depreciation allowed by the AO may be modified accordingly. 5. We have heard both the parties. Relevant findings perused. The sole issue between the parties is about treatment of assessee s repair claims pertaining to its hotel building and plant machinery. Both the lower authorities except to the extent of minor fraction in lower appellate order hold the same as capital expenditure. It emerges that this tribunal s co-ordinate benches in assessment years 2005-06 to 2007-08 have already decided the very issue in assessee s favour. Pages 1 to 16 of the paper book contain a compilation of said orders. The factual position however is different in succeeding assessment years wherein the assessee has itself treated 65% of the above ..... X X X X Extracts X X X X X X X X Extracts X X X X
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