COMMISSIONER OF INCOME-TAX, C.R BUILDING, QUEENS ROAD, BANGALORE, THE DEPUTY COMMISSIONER OF INCOME TAX SPECIAL RANGE - 15, BOMBAY AND DY. COMMISSIONER OF INCOME TAX, CIRCLE 11 (3) RASHTROTHANA BUILDING, NRUPATHUNGA ROAD, BANGALORE Vs. M/S H.P

JUDGEMENT

(1.) THIS appeal is by the Revenue challenging the order passed by the Tribunal which held that the expenditure incurred by the assessee by way of electrical work, civil work and interior decoration is in the nature of the revenue expenditure and therefore directed the Assessing Officer to allow the entire expenditure under this head as revenue as claimed by the assessee.

(2.) THE assessee is a listed public company and engaged in the manufacture, sale and service of various kinds of computer, development sale and export of computer software, etc. They incurred certain expenditure like electrical works, civil works, air conditioning, wooden partition and fixtures on the leasehold properties and claimed it as revenue expenditure. The Assessing Officer called for the details and justifications for the claim of such expenditure. The assessee furnished the details called for. After furnishing the particulars, the assessee contended that the expenditure incurred are in respect of leased properties and they do not give to the assessee the benefit of enduring nature and the amount spent was for business purpose and not for acquisition of the capital asset. The particulars given by the assessee reads as under: <FRM>JUDGEMENT_2123_TLKAR0_2011(1).html</FRM>

(5.) <FRM>JUDGEMENT_2123_TLKAR0_2011(2).html</FRM>