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TMI Blog2019 (1) TMI 753X X X X Extracts X X X X X X X X Extracts X X X X ..... enditure having regard to the nature of business carried on by the assessee. Furthermore, it was pointed out that this fixtures and fittings cannot be removed and used again, and taking note of the nature of business carried on by the assessee and nature of expenditure, the Hon'ble Division Bench held that the Tribunal came to the correct conclusion in holding that those items as revenue expenditure allowable as deduction under Section 37 of the Act. - decided against the Revenue - Tax Case (Appeal) Nos.594 and 595 of 2018 And C.M.P.No.11880 of 2018 - - - Dated:- 17-12-2018 - Mr. Justice T.S. Sivagnanam And Mr. Justice N. Sathish Kumar For the Appellant : Mr.T.R.Senthil Kumar, Senior Standing Counsel For the Respondent : Ms.K.C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee for relaying of marble floor in the place of mosaic flooring was treated as capital expenditure, similarly, the wood work done by the assessee, purchase of grinder and kitchen equipment, and television. Accordingly, a sum of ₹ 58.4 lakhs was treated as capital expenditure. For the assessment year 2012-13, the Assessing Officer found that the assessee incurred expenditure towards air conditioning in Lobby and Resto Pub and also towards dish washing machine and audio/video equipment in Resto Pub. The Assessing Officer treated the expenditure of ₹ 64,33,151/- as capital expenditure and allowed depreciation. The assessee preferred appeal before the Commissioner of Income-tax (Appeals)-15 (for brevity the CIT(A) ), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssing Officer, which was reversed by the Tribunal. On appeal by the Revenue before the Hon'ble Division Bench, the Division Bench held that these items are in the nature of petty replacement of items which already existed and, therefore, these could not be taken as capital expenditure at all. 8.Further, it was held that expenditure like putting of decorated mirrors with pictures of religious personages or putting of plaster-moulded roof decoration in the dining-cum-lecture hall was incurred with a view to beautify the premises and this would have to be recorded as revenue expenditure having regard to the nature of business carried on by the assessee. Furthermore, it was pointed out that this fixtures and fittings cannot be removed an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se of Empire Jute Co. Ltd. vs. CIT, [1980] 124 ITR 1 (SC), held that an action merely facilitates the assessee's business making it profitable, whilst leaving the fixed capital untouched, is to be treated as revenue expenditure. 11.In CIT vs. Lake Palace Hotels and Motels (P.) Ltd., [2002] 258 ITR 562 (Rajasthan), the assessee incurred expenditure towards repairs and renovations for the hotels, which were necessitated on account of the Commonwealth Foreign Ministers' Conference. The question was whether the expenditure incurred by the assessee-company, for the purpose of modernisation, fall in the category of 'revenue expenditure' or 'capital expenditure'. Taking into consideration all the decisions on the poi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in favour of the Revenue. 14.We have examined the said decision and we find that no specific reasons have been assigned as to how the decision in the case of Sri Mangayarkarasi Mills (P.) Ltd. (supra) would apply to the facts and circumstances of the said case. Furthermore, the decision of the Hon'ble Supreme Court in Empire Jute Co. Ltd. (supra) as well as other decisions on the point in Dasaprakash (supra) and Ooty Dasaprakash (supra) were not brought to the notice of the Division Bench. Therefore, we find the said decision is distinguishable. 15.Apart from the above, in the assessee's own case, in CIT vs. Savera Industries Limited (T.C.A.No.839 of 2016: Dated 11.01.2017), the Hon'ble Division Bench of this Cou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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