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TMI Blog2023 (2) TMI 841X X X X Extracts X X X X X X X X Extracts X X X X ..... he compound wall. It is not the claim of the AO that a new asset has been created. It is a fact that there was an existing factory shed. The assessee has merely renovated it to suit for his purposes. By doing so, no new asset has been created. It was merely repairs of the existing asset to make it suitable for the purposes of the assessee. As relying on Oxford University Press case [ 1975 (7) TMI 19 - BOMBAY HIGH COURT] the expenditure incurred on repairs and renovation was revenue in nature and hence, allowable as revenue expenditure. Accordingly, grounds of appeal raised by the assessee are allowed. - ITA No. 385/PUN/2019 - - - Dated:- 13-1-2023 - SHRI S. S.GODARA, JUDICIAL MEMBER AND DR. DIPAK P. RIPOTE, ACCOUNTANT MEMBER F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee submitted paper book containing 267 pages, the ld.AR submitted bills for the said expenditure in the paper book and photographs of the repairs carried out. The ld.AR explained that assessee has done flooring, painting, piping, plumbing and compound wall repairs. This was done because the asset purchased was an old asset. By spending the amount, the assessee has not created new asset. Assessee has merely renovated the existing asset. The ld.AR relied on the following decisions: Alembic Chemical Works Co. Ltd. v. CIT-177 ITR 377 (SC) Empire Jute Co. Ltd. v. CIT-124 ITR 1 (SC) CIT v. Oxford University Pressl08 ITR 166 (Bom HC) CIT v. DLF Commercial Developers Ltd. 323 ITR 321 (Del HC) CIT v. Delhi Press Sam ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essee. The Hon ble Bombay High Court in the case of CIT Vs. Oxford university Press in (1971) 108 ITR 166 has held as under: It was sought to be urged by Mr. Joshi for the revenue that on their own showing the assessee's architects had claimed that the effect of repairing work had prolonged the life of the building by at least 15 years and if that was so, it should be held that a new advantage of enduring character had been obtained by the assessee by undertaking guniting work. It would be pertinent to observe that every type of repairs carried out to an asset like a building is bound to extend to a certain extent the life of the asset and simply because the assessee's architects claimed that because of repairs the life of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich was a wooden layer by wooden boards. In the year of account, a layer of oxychloride was laid between the two layers. Though this process cost the company less than the original process, it made the floor more durable. The department's contention was that by this particular process anew asset had come into existence and, therefore, the amount spent was not a revenue expenditure. This court held that the assessee was only maintaining and preserving an asset, which he already possessed, by the process which he adopted. The life of the asset was made longer and it was made to give better service than it was doing in the past. Even so, the expenditure incurred was not of a capital nature. The ratio of this case would apply with equal fo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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