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TMI Blog2015 (2) TMI 1285X X X X Extracts X X X X X X X X Extracts X X X X ..... sing officer has no-where pointed out that by incurring expenditure the assessee has enhanced his capital assets. On the contrary, the finding is that the expenditure was necessary to repair the damage caused by fire. It was, therefore, clear case of a revenue expenditure. - Decided in favor of assessee. - IT Appeal No. 622 of 2004 - - - Dated:- 6-2-2015 - GIRISH CHANDRA GUPTA AND Arindam Sinha, JJ. For the Appellant : Mrs. Smita Das De, Advocate. For the Respondent : M.K. Lodh, Advocate ORDER 1. The Court - The subject matter of challenge in this appeal is a judgment and order dated 29th April, 2004 by which the learned Tribunal agreeing with the CIT(Appeals) held that the expenses incurred by the assessee were allowa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stances of the case, and on a proper interpretation of the provisions of Section 30 of the Income Tax Act, the learned Tribunal was right in upholding the order of the Commissioner of Income Tax (A) on the ground that the expenditure under the head repairs were incurred to preserve and maintain an already existing asset and not to bring a new asset into existence ? (b) Whether on the facts and in the circumstances of the case the order of the learned Tribunal is perverse in the eye of law ? We have heard Mrs. Das De, learned advocate appearing for the revenue and have not been impressed by her submission. 4. Section 30 permits deduction of expenses on account of rent, rates, taxes, repairs and insurance of rented accommodation. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the construction of any structure or doing of any work, in or in relation to, and 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 work is a building owned by the assessee. 6. The question for consideration is whether the expenditure was incurred by the assessee for the purpose of enhancing the value of its capital assets. If that question is answered in the affirmative then the expenditure shall become an expenditure of a capital nature. But if an answer to that question is in the negative, then the expenditure shall be of a revenue nature. 7. The assessing officer has no-where pointed out that by incurring expenditure the assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X
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