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TMI Blog1990 (7) TMI 147X X X X Extracts X X X X X X X X Extracts X X X X ..... xpenditure of Rs.1,00,243 claiming it to be expenditure incurred for repairs and maintenance of hotel building. The ITO allowed 30 per cent of the aforesaid expenses as revenue expenditure and the balance amount of Rs. 70,171 was considered as attributable as expenditure for major renovation, etc. The CIT(A) confirmed the said order of the ITO. The present appeal is directed against the said order. 3. The learned counsel for the assessee contended that the entire expenses incurred for repairs ought to have been allowed as such expenditure is clearly covered by the specific provisions of s. 30. In the alternative it was contended that even if it is assumed that part of the expenses are not covered by the term "current repairs", such expen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ture in the nature of repairs are dealt with by a specific provision contained in s. 30, the provisions of s. 37 which deal with deduction of residuary business expenditure will not apply. It was further contended that the nature of expenses incurred by the assessee should be viewed keeping in view the nature of assessee's business. By incurring expenditure for renovation of hotel rooms, floors and replacement of marble in place of tiles, replacement of sanitaryware etc., the income yielding capacity of the hotel increased and it resulted in acquisition of enduring benefit hence such expenditure have rightly been held to be of capital nature. He, therefore, supported the order of the departmental authorities. 5. We have carefully conside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... h expenses cannot be described as current repairs the same would be allowable as revenue expenditure under s. 10(2)(xv) which was residuary clause permitting grant of deduction of all expenses which have been incurred wholly and exclusively for the purpose of business. The Hon'ble Gujarat High Court in the case of Ahmedabad MFG. Calico Pvt. Ltd. has held that since no new building or room was brought to existence, the expenses incurred for repairing and reconditioning the room in which certain machineries were installed is clearly allowable as revenue expenditure. The Hon'ble Supreme Court in the case of Empire Jute Co. Ltd. vs. CIT (1980) 17 CTR (SC) 113 : (1980) 124 ITR 1 (SC) has also held that there may be cases where expenditure, eve ..... X X X X Extracts X X X X X X X X Extracts X X X X
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