9911796707
TMI Blog2016 (11) TMI 1597X X X X Extracts X X X X X X X X Extracts X X X X ..... hotel as a single unit, replacement of Air Conditioner Machine, Dishwash Machine and Audio Video in Resto Pub has to be considered as maintenance of the building for the purpose of running the business of hotel. Therefore, the CIT(A) has rightly found that the expenditure was revenue in nature. - decided against revenue. - ITA Nos. 576 & 577/Mds/2016 - - - Dated:- 23-11-2016 - SHRI N.R.S. GANESAN, JUDICIAL MEMBER AND SHRI D.S. SUNDER SINGH, ACCOUNTANT MEMBER For the Appellant : Shri Supriyo Pal, JCIT For the Respondent : Shri G.Seetharaman, C.A. ORDER PER N.R.S. GANESAN, JUDICIAL MEMBER: Both the appeals of the assessee are directed against the respective orders of the CIT(A) dated 14.12.2015 for the Assessmen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding remains the same. The profit earning apparatus of the assessee continues to be the same. Being a star hotel, the assessee has to improve its ambiance to attract more customers. The assessee has to necessarily replace the existing mosaic floor into marble floor in order to maintain the business asset. Therefore, the expenditure incurred by the assessee in replacing the mosaic floor by marble floor has to be treated as revenue in nature. Therefore, this Tribunal is do not find any reason to interfere with the order of the CIT(A) and accordingly, the same is confirmed. 5. Now coming to the assessment year 2012-13, Shri Supriyo Pal, the learned department representative submitted that the assessee has purchased Air Conditioner Machine, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Audio Video in Resto Pub. This Tribunal is of the considered opinion that in the absence of any material to suggest that the assessee has purchased any new machinery, it has to be considered only as replacement of the existing machinery. When we consider the hotel as a single unit, replacement of Air Conditioner Machine, Dishwash Machine and Audio Video in Resto Pub has to be considered as maintenance of the building for the purpose of running the business of hotel. Therefore, the CIT(A) has rightly found that the expenditure was revenue in nature. Therefore, this Tribunal do not find any reason to interfere with the order of the lower authority and accordingly, the same is confirmed. 8. In the result, both the appeals filed by the reven ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
