2018 (10) TMI 854

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..... ee has done is that existing make-up rooms have been renovated . This included replacement of urinal pans , removal of plaster, replacement of doors and windows, waterproofing treatment etc. In our considered opinion these expenditure cannot be said to be capital in nature and hence they are duly qualified for revenue expenditure. - decided in favour of assessee. - I.T.A. No.1268/Mum/2017 - - - Dated:- 10-10-2018 - SHRI SHAMIM YAHYA, ACCOUNTANT MEMBER AND SHRI RAMLAL NEGI JUDICIAL MEMBER For The Appellant : Shri Mani Jain and Shri Prateek Jain For The Respondent : Shri Choudhary Arunkumar Singh- DR ORDER PER SHAMIM YAHYA, ACCOUNTANT MEMBER: This appeal by the assessee is directed against order of learned .....

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..... heses are capital in nature as there are heavy repairs which are of enduring nature and he held that such expenses is not recurring in nature. The Assessing Officer further noted that the Court decisions had accepted the position that there can be no exhaustive or universal application of the concept of enduring benefit. According to Assessing Officer such repairing related 76 make-up rooms are not at all recurring in nature, hence he allowed depreciation @10% and disallowed amount of ₹ 1,48,87,798/- as capital expenditure. 3. Upon assessee's appeal ld. CIT(A) confirmed the action of the Assessing Office . He held that the make-up rooms have been renovated substantially as there is replacement of urinal pans, removal of old cem .....

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..... e case of CIT vs. Oxford University Press (108 ITR 166) has expounded that the test for judging the nature of capital or revenue expenditure is to see whether as a result of expenditure what is being done is to preserve and maintain an already existing asset or whether as a result of expenditure a new asset or a new advantage is being brought into existence. The mere quantum of expenditure is not by itself decisive of the question whether it is in the nature of revenue or capital. Simply because of repair the life of building was prolonged for at least 15 years and it could not be said that the expenditure was in the nature of capital expenditure. 5.3. Furthermore, we note that Hon'ble Apex Court in the case of CIT vs. Kalyanji Mavji .....

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