current repairs' was to be
understood as including replacement, s. 31(i) will become completely redundant
and absurdity will creep in because repair implies ... field over the years. In the facts of that case, extensive repairs to the
structure of a building, a theatre, was held as not deductible
lakhs incurred on renovation of the said
premises being repairs is allowable under Section 30 of the Act; and
(c) In any case there ... finding of fact that the so called "repairs and
maintenance" were in fact extensive renovation involving civil work. This
expense resulted
incurred on the construction of any structure by
way of renovation, extension or improvement, then the provisions
of Section 32 would apply to the assessee ... capital in nature can be
allowed under the head of Current Repairs of building or plant
and machinery. In the assessee's case
appellant towards repairs in the
leasehold premises is not an expenditure allowable
under section 31 as current repairs or alternatively as
expenditure under section ... carried on any repairs or renovation to the existing assets to
claim the expenditure as current repairs u/s.31 of IT Act. The
assessee
claimed expense of
₹1,61,94,830/- under the head "repair" & "maintenance" by debiting in profit
and loss account. This ... assessee to furnish the
details of expenses incurred in relation to repair and maintenance but
assessee failed to furnish any details. Therefore AO disallowed
high
court has held that the expenditure incurred on repairs and
operation of leasehold premises is revenue expenditure. He further
submitted that unless and until ... been incurred. He vehemently submitted
that the expenditure incurred is towards repairs of existing
superstructure only and was not in respect of laying
matter of assumption that
merely because a large sum is expended on repairs, it necessarily amounts to
expenditure capital in nature. Unless a new asset ... towards common area development expenses;
- Rs.13,40,173/- towards repairs & maintenance expenses; and
- Rs.18,06,000/- other miscellaneous expenses.
3.1 The details
Samsonite South Asia P.Ltd, Mumbai vs Dcit Cir 11(1)(2), Mumbai on 1
carried on
any repairs or renovation to the existing assets to claim the expenditure
as current repairs u/s.31 of IT Act. The assessee ... that unless the expenditure incurred for construction of
any structure or improvement, extension etc., in the leasehold premises,
it does not fall under Explanation
work in or in relation to,
and by way of renovation or extension of, or improvement to, the
building, then the provisions of this clause ... expenditure incurred by the
assessee on a leased premises for renovation or extension or
6 ITA No.202/VIZ/2015
(M/s. Prakash Arts)
improvement
