COMMISSIONER OF INCOME TAX Vs. REX TALKIES

JUDGEMENT

(1.) THE following question has been referred by the Income-tax Appellate Tribunal, Bangalore Bench, for the opinion of this court, at the instance of the Revenue under s. 256(1) of the I.T. Act, 1961 : Tribunal was right in law in holding that the amount of Rs. 55,651 spent on renovation, addition, alterations, etc., to the furniture, fittings, etc., was allowable as revenue expenditure ?"

(2.) THE assessee, a registered firm, is a tenant of a cinema theatre. During the year ending March 31, 1975, the firm renovated the theatre and incurred expenses such as the following : <FRM>JUDGEMENT_560_ITR148_1984Html1.htm</FRM>

(3.) THE point that arise for consideration is, whether the expenditure incurred by the assessee on renovation, addition, alterations to the furniture, fittings, etc., of the cinema theatre, was rightly allowed as a revenue expenditure.