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TMI Blog1977 (3) TMI 50X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome a sum of Rs. 13,994 holding it to be allowable as revenue expenditure disallowed by the Income-tax Officer as capital expenditure. The assessee a registered firm had claimed expenditure of Rs. 13,994 on account of shop repairs. The claim made was that the shop was in a very bad condition and the expenditure had to be incurred on ground of business expendiency. The assessee is a tenant of tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cision in CIT vs. M/s. Jagat Cinema(1). It was submitted that assessee had only made minor structural chances. The floor and the roof had remained in tact. Only the walls were removed to make the shop a big hall for business purposes. The Appellate Assistant Commissioner agreed with the submissions made on behalf of the assessee and held that the claim was allowable under s. 37 of the Act. Being a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s shop and reconstructed it. After hearing the parties, we are inclined to agree with the view taken by the Appellate assistant commissioner. As noted above the shop is on the ground floor of a three storeyed building and it could not have been dismantled and reconstructed as stated by the Income -tax Officer the roof and the floor of the shop remained as they were. Only the middle walls were remo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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